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Intro

Tuesday

SPY bullish.

QQQ bullish.

Macro trend bullish.

Realtime prints low volume. Neutral. The only ticker I see in the bunch that may be selling the highs is MSFT. Watch 328.41

Close prints neutral.

The darkpool data does not look like selling the highs. They could start tomorrow though. The boys at mission control will often hold price at the highs for longer than one day while they are selling.

One other indicator to watch is the SPY fib I posted a couple days ago. We hit the 1.618 extension of the initial run up today and also the weekly Keltner channel. It would not be unreasonable for SPY to have a pullback of some degree or perhaps run sideways for a few days while the technical indicators catch up to price. Of course, the evil option would be to pour on the throttle for a zoom up day #2 and leave all the bulls behind. All 3 options are on the table.

On SPY, watch to see if we stall at the 449 level. Good level to watch to see if we’re going up, down, or hugging.

 

Wednesday

Last night I recommended watching SPY 449. Today that level was tested several times, and SPY closed around 451. Not exactly a zoom up day, but not a bad day either.

 

Swing Trading

For those of you who are aspiring swing traders, extra commentary tonight. If you are a free subscriber, this will give you some idea of the extra material in the paid section.

• I posted about swing trades setting up on 8/21. <hint> <hint>
• Notice that IWM (chart below) hit the 200 day moving average on 8/18 (pink line)
• Notice also that they scared everyone to death on 8/25 with a lower low. That dip is called a stop run. Stop runs are to scare you out of positions. I may have felt a little greed that day.
• RR 4hr oscillator had rebounded from the lowest reading so far. “Breadth was improving”
• IWM (index of 2,000 stocks) was in a $2 range for basically 7 trading days. If you think the boys at mission control don’t give you enough time to enter a trade, think again.
• A good swing trader:
  • has already taken profits on some of those trades
  • has resting limit orders on anything that is close to target
  • has at minimum, a mental stop loss if the market decides to turn down here

SPY PRINTS

Notice that trades continue to come in at the same spots as July.