The SPY gapped down on Friday morning and then proceeded lower all day. Monday morning brought renewed optimism as the SPY gapped down again but this time reversed and closed a little under the highs of Friday. Notice that the SPY traded as low as 212.25ish and as high as 217ish. Lets focus on that range and what has happened since.
The triangle and horizontal lines are meant to point out the high & low of Friday & Monday AND to show the downward progression of the highs of each of the days since Friday 9/9. This includes today Monday 9/19. Last Thursday again brought renewed optimism but look where the top of the daily candle stopped. Right on the hypotenuse of the triangle. Now look at today 9/19. The SPY opened the day up about 10ish points. Optimism was in the air. After the markets opened they proceeded higher, for a while. How long? Just long enough for the high of today to reach the hypotenuse of the triangle again. Then it was all down hill from there.
Some traders, or analysts, or technicians will tell you "they think the market is headed ________". I am reminding you that any of us could guess what the market will do next. I would much prefer to follow the SPY out of the triangle. Will it go up through the hypotenuse? Will it go down through the horizontal bottom? No one knows. But when it leaves this triangle, you should consider following it out.
Don't let these choppy markets get you down. Stay focused! You may have to be nimble. You may have to be flexible enough to change directions. Just don't get locked into a belief about which way the market will go from here.
Good luck to you!
Trade what you see... Not what you wish, hope, feel, or...
The downtrend is your friend until the price moves above it...
The triangle and horizontal lines are meant to point out the high & low of Friday & Monday AND to show the downward progression of the highs of each of the days since Friday 9/9. This includes today Monday 9/19. Last Thursday again brought renewed optimism but look where the top of the daily candle stopped. Right on the hypotenuse of the triangle. Now look at today 9/19. The SPY opened the day up about 10ish points. Optimism was in the air. After the markets opened they proceeded higher, for a while. How long? Just long enough for the high of today to reach the hypotenuse of the triangle again. Then it was all down hill from there.
Some traders, or analysts, or technicians will tell you "they think the market is headed ________". I am reminding you that any of us could guess what the market will do next. I would much prefer to follow the SPY out of the triangle. Will it go up through the hypotenuse? Will it go down through the horizontal bottom? No one knows. But when it leaves this triangle, you should consider following it out.
Don't let these choppy markets get you down. Stay focused! You may have to be nimble. You may have to be flexible enough to change directions. Just don't get locked into a belief about which way the market will go from here.
Good luck to you!
Trade what you see... Not what you wish, hope, feel, or...
The downtrend is your friend until the price moves above it...
