I posted the SPY chart that I sent to subscribers last night without any annotations and a few blog readers weren’t quite sure what the chart meant.
The key is the two line drawn and support and resistance. If SPY gets close to the top line (around $93-95), that sets up a great short entry. The market will go from overbought to extremely overbought, the moving average comes into play along with price resistance. Obviously this is the move I am hoping for.
If we don’t get more bounce, but rather a pullback, long entries can be made near the support line.
At this moment, I am only managing positions. I dont’ see good entries, especially long entries.