SPY Prints Possible Reversal Candle

Believe it or not, although SPY was down almost 4 percent today, technically it was a good day. The index printed a bullish “long tail” candle on massive volume, while the Worden T2108 indicator at extreme oversold levels. Generally, this ia a clear reversal signal, at least short term.

The index recovered right after I was stopped out of the SPY trade (via SSO) and closed over 2 points above my entry . Looking back, it’s easy to say I should have used a wider stop. However, my main concern was limiting risk.

While I am disappointed that I got stopped out of SSO, the X and K trades were gems. X closed up over 6 points from entry and both printed bullish candles.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at WordPress.com.

Up ↑

%d bloggers like this: