Tuesday, December 29, 2020

Island in the Sky

Probably a lot of people noticed this potential island on the SP500 cash index 30-minute chart.

SP500 Cash Index - 30 Minutes - Island

While it shouldn't be made too much of, the gap on the right-hand-side could fill, but so far the down move is not impulsive (yet). While today's opening gap up was closed, yesterday's gap up was not. As of this time, the island was contained within the 1.382 external retracement on the down wave. So, at this location it could make and excellent y wave of minute ((b)) up, but such a pattern needs some confirmation.

For example, at the end of the day, the most recent upward three-touch trend line had not been broken or back-tested yet.

Have a good start to the evening.

TraderJoe


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17 comments:

  1. TimHDecember 29, 2020 at 4:57 PM

    Thanks TJ

    ReplyDelete
  2. GreywaverDecember 29, 2020 at 5:24 PM

    Offered as a complement (hopefully) to TJ's chart above -

    https://funkyimg.com/i/39Hcs.png

    ReplyDelete
    Replies
    1. TimHDecember 29, 2020 at 6:25 PM

      👍 BB. Are tight on daily

      Delete
    2. Aw328December 29, 2020 at 10:05 PM

      Could lead to price exploding up in a third wave

      Delete
    3. TimHDecember 30, 2020 at 8:32 AM

      👍 tight BB. can go either direction. Usually big moves come from squeezed BB.

      Delete
  3. BBRiderDecember 29, 2020 at 10:26 PM

    Yardeni Research puts it out all the time, quite funny to watch.

    ReplyDelete
  4. GreywaverDecember 30, 2020 at 12:42 AM

    A very subtle bounce/turn in the IWM earlier today - (just for illustration)

    https://funkyimg.com/i/39HrC.png

    ReplyDelete
  5. TerryODecember 30, 2020 at 4:26 AM

    My thanks too TJ:
    And perhaps Island in the Stratosphere would be fitting with prices at or near record extreme values. I see a little bit of TSLAs action now reflecting in the SPY, added in the middle of the Island. With TSLAs vertical ascent - which reminds me of beans in the teens during a drought market - its inclusion in the index may have transferred "the bag" to the unmanaged accounts that merely parrot the index.

    ReplyDelete
  6. tradingview alertsDecember 30, 2020 at 10:07 AM

    I bought UUP calls last week and sold for quick profit (last week). DXY has now made a new low this week, with EURUSD 4hr looking like an ending diagonal structure...we'll see. Added some calls on UUP today. New month (and weekly) candle on the way on Monday.

    ReplyDelete
  7. Elliott_TraderDecember 30, 2020 at 10:17 AM

    ES 1-Hr,..back down to lower channel line; RSI seems to be back-testing trend line.

    https://invst.ly/tapnw

    TJ

    ReplyDelete
    Replies
    1. TimHDecember 30, 2020 at 10:53 AM

      👍 cash daily - dark cloud cover still in play below 3756. Below 3723 could get traction?

      Delete
  8. Elliott_TraderDecember 30, 2020 at 10:30 AM

    Eur/USD Futures (6E) exactly tagged the upper Bollinger Band this morning. It's slow stochastic is in over-bought territory.

    https://www.tradingview.com/x/MtyIdzUP/

    TJ

    ReplyDelete
  9. GreywaverDecember 30, 2020 at 1:37 PM

    Update on 30min/2hr cash (looks like decision time) -

    https://funkyimg.com/i/39JgL.png

    ReplyDelete
  10. Elliott_TraderDecember 30, 2020 at 2:19 PM

    ES 1-Hr: first breach of lower channel line after RSI back-test.

    https://invst.ly/tasi7

    TJ

    ReplyDelete
    Replies
    1. Elliott_TraderDecember 30, 2020 at 2:41 PM

      ES 5-min, as far as I can tell, this last leg downward is now long enough to meet the definition of an expanding diagonal.

      https://invst.ly/taspk

      But, as always, a retrace to the high must hold below it for a 'leading' diagonal; otherwise ending.

      TJ

      Delete
  11. Elliott_TraderDecember 30, 2020 at 4:53 PM

    A new post is started for the next day.

    ReplyDelete

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