SPY (S&P) Monday Technicals - "Gap Up Monday"

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Thread: SPY (S&P) Monday Technicals - "Gap Up Monday"

          
   
  1. #1
    123456's Avatar
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    Default SPY (S&P) Monday Technicals - "Gap Up Monday"

    Per Warren Buffett which states “Be fearful when others are greedy and greedy when others are fearful”. This was the story of three days of sell off. Everyone and their mom went short, and many retailers, average joe's probably thinking, they got it fully figured out, they went short today for Monday. With a rug pull, there is going to be blood bath among shorts, With that in mind, it's great to be long.

    The average retail trader is playing with scared money, weak hand, and looking for small gains. They'll be covering right away, as soon as they see some cash. On the other hand, being on the wrong side of the trade, they also take quick losses and switch hands. Not to mention, the Boxes always trade against the retail. So the boxes, will be going long themselves helping the longs. What does this mean? Covering, Covering and more Covering. When shorts cover, Stocks go up.

    SPY put in a Great Bottom Close Today at $116, with Major Support posted earlier http://bit.ly/oUvBe1 . As you can see, there is support all the way back 2010. On top of that, Another higher lows was put in and this is more, confirmation of basing.

    After more technical analysis and doing a 10Month Charting, we can see the confirmation of the basing and where we'll be gapping up to for testing, before another sell off. The next level of resistance to break through is at $124-125 area indicated by chart drc: http://bit.ly/q07K61 .

    In my opinion, we have great support here: http://bit.ly/oUvBe1 + http://bit.ly/q07K61 + Retail Traders Short (Scared Money, Weak Money, Quick Trend Reversals + Robots in Favor of Longs), we'll be looking at green Monday and Tuesday, depending on the volume, and how far up to the $125 area we make it.

  2. #2
    kunal00@bullsonws's Avatar
    kunal00@bullsonws is offline Silver_Sponsor
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    Great analysis friend. Well thought out. It seems the market is in a range and attempting to base out or form a bottom. forming a bottom is never an event but a process and its often takes pops and drops and fits and starts to do it. And it seems thats what we are seeing here. There will be a lot of headfakes along the way but if you can stick to the range and key support levels its still tradeable.
    Kunal Desai
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  3. #3
    123456's Avatar
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    I completely agree.




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  5. #4
    M6Cabrio's Avatar
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    nice bear flag on that last chart. We probably head to 950 within the next few weeks/months on the ES. similar chart I will post, but had it for a while, updated with today's bar...


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