OBV Divergence - SPY
Clear divergence on the 2-day chart. Also evident across other time frames. If we snapped back now, it would be a gentle 3-5% pullback. The market is pretty hot right now, so it's quite probable price action and OBV divergence will continue for a while longer.
If you need further evidence, pull up a chart from around Jan 16, 2020 - you'll see an identical pattern. Price action pulled back slightly but then everyone bought the dip and price action ran up while on balance volume continued to fall. And, we all know what happened to the market in February.
Is a big red correcting candle enough to send the market into a stampede for a second time in 365 days? I think not. But, I would not be opening new positions at this time. If you have a knack at calling tops (gee, that's everyone on here, right?), you might be able to comfortably open up a short position. If we get a big green candle that blasts thru 3 standard deviations on my Bollinger bands, I'll be very tempted to go short. Will follow-up at that time.
If you need further evidence, pull up a chart from around Jan 16, 2020 - you'll see an identical pattern. Price action pulled back slightly but then everyone bought the dip and price action ran up while on balance volume continued to fall. And, we all know what happened to the market in February.
Is a big red correcting candle enough to send the market into a stampede for a second time in 365 days? I think not. But, I would not be opening new positions at this time. If you have a knack at calling tops (gee, that's everyone on here, right?), you might be able to comfortably open up a short position. If we get a big green candle that blasts thru 3 standard deviations on my Bollinger bands, I'll be very tempted to go short. Will follow-up at that time.
Note
Here's the OBV divergence we saw last year before the panic sell-off: Note
PS. The upper band of 3.0 STD DEV on the BB's is currently $405. In other words, there's some room to grow before this thing pops. But it's kind of like musical chairs at this point. Lots of market forces wants us to see $400.Note
If we get a gap up scenario similar to Nov 9th, I will be going short. The market rhymes ...yadda yaddaTransaction en cours
SHORT $382.80Trade fermée manuellement
COVERED $382.00Note
Short pullback this AM to scalp a small profit. No major selling frenzy here.Transaction en cours
SHORT $382.76Trade fermée manuellement
$382.64Note
Next stop, $384.95Transaction en cours
Short $383.62Note
Major dump in OBV @ 9:36AM triggered new short.Trade fermée manuellement
Covered $383.30Ranging
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.