From the link:
My bias going into Friday is a pause, possibly going into a pull back.
But, thanks to SPY rising six days in a row, putting a black candle on the price chart and an inside day today (see the chart below), it’s going to be easy to see the next move, either up or down. Every black candle, which I simply define as a day in which the close is higher than the day before and lower than its open, is a clear sign of indecision in the market and an inside day is a further indication of indecision. The indecision obviously is resolved above the high or below the low of the black candle day. It’s that simple.
WYNN up 13% on four days this week!
For more discussion and the chart:
SPY FLIES INTO A BLACK CANDLE
I agree and my data supports yours. However, I only use it as a early warning system. The SOS on those days (SM selling) (DM still buying) is what you are pointing out. Nice work to see that pattern... A move back down below the 200 DMA is probably getting closer, but that's just an opinion, a guess. I only trade the signals , and for now the trend is up. I remain on a buy signal, but I will flip once the trend changes to VXXB and a cash position. For now the trend remains up Brother!
The 2 hour will let us know and the daily will confirm....waiting....
Well, that's how I'm going to trade it even if I get whipsawed...I just trade the signals. A move below the 5, 9, and 13 on all my trading charts....
I want to point out I ONLY trade (VXF/VXXB in our 401ks) and the miners (GDXJ). I don't care about any other index.... VXF represents 4500ish small and mid cap stocks....
https://stockcharts....600&a=656373458
VXF tracking data since the 2008 low.....
https://stockcharts....436&a=656279973
Edited by robo, 04 April 2019 - 06:31 PM.
