Attached is a follow up to the 30 minute view
of SPY I posted yesterday. If you look at the yesterday post, sent at 9:27
PST, you see that the 9:30 bar was red indicating a
potential short term reversal however the follow up shows that the bar
closed blue and near the high of the bar. This happens to be the high bar
of the up move that began at 7:30. The 10:00 bar turned red early giving
plenty of time to short.
In yesterday's post I suggested that a
tradable reversal could occur at the forecast Near Impulse line at 11:00
PST( 2:00 PM EST). On the follow up you see that instead of a reversal an
acceleration to the down side occurred and another Near Impulse line
appeared for the 12:00 PST bar. This 12:00 bar was indeed the low bar of
the down move from 9:30 and the market rallied from there.
As for Monday, SPY, DIA and QQQQ all show
exhaustion gaps and short term sell signals. My survey of the DOW 30 and
NASDAQ 100 also showed a large number of stocks with sell signals in
place. On the 30 minute chart the Near Impulse forecast line for Monday is
at 9:30 PST so look for a trend change around that time.
Regards,
Jim