Here are a couple reasons I think short is wrong... but not for long!
T.A. from the Present, compared to the past, to offer incite to future...
There is a striking similarity in Performance & Indicators between Points:
1a - 27 Jan & Point 2a - 4 Sept
On SPY Daily...
Some additional indicators seemingly in agreement
Likely many people have gone short expecting a bigger drop.
If the pullback does not pan out they will be forced to close shorts driving market higher.
And UVXY...
Note the Volume... Looks like everyone and their grandmother is ready for some volatility!
We are however, just touching the bottom edge of the cloud, and hitting the 200ma
POTENTIAL FOR THE COMING WEEK (8-12)
Tuesday - gap up, followed by a drop reversing to end higher
Wednesday - gap up briefly, reversing to end lower
Thursday - gap up (but not above), reversing to end lower
Friday - small gap down, followed by a short rise reversing to end much lower (another drop psych-out)
FOLLOWING WEEK (14-18)
Monday - Thursday - up all these day (rising higher than previous peak = short's exit)
Friday - steam off down day
3RD WEEK (21-25)
Mixed week but ending moderately up
4TH WEEK (28-2)
Mon - Tue up... Mid-week (Sept 30) start heading lower (possibly a larger down cycle)
T.A. from the Present, compared to the past, to offer incite to future...
There is a striking similarity in Performance & Indicators between Points:
1a - 27 Jan & Point 2a - 4 Sept
On SPY Daily...
Some additional indicators seemingly in agreement
Likely many people have gone short expecting a bigger drop.
If the pullback does not pan out they will be forced to close shorts driving market higher.
And UVXY...
Note the Volume... Looks like everyone and their grandmother is ready for some volatility!
We are however, just touching the bottom edge of the cloud, and hitting the 200ma
POTENTIAL FOR THE COMING WEEK (8-12)
Tuesday - gap up, followed by a drop reversing to end higher
Wednesday - gap up briefly, reversing to end lower
Thursday - gap up (but not above), reversing to end lower
Friday - small gap down, followed by a short rise reversing to end much lower (another drop psych-out)
FOLLOWING WEEK (14-18)
Monday - Thursday - up all these day (rising higher than previous peak = short's exit)
Friday - steam off down day
3RD WEEK (21-25)
Mixed week but ending moderately up
4TH WEEK (28-2)
Mon - Tue up... Mid-week (Sept 30) start heading lower (possibly a larger down cycle)
See next step analysis: