In white is the pennant forming
The yellow resistance is relevant, and if you removed the white resistance and just kept the yellow resistance and white support it would resemble a bear flag... I'm seeing the same pattern on my 4hour RSI (See rsi).
384.50 will be an important number starting off the week.. 384.50 is the resistance of the yellow trendline and also fib resistance If you use these levels
High - 387.41
Low - 374.77
If we break above 384.50 then I like the move to 387-388.
At 10am est tomorrow there is Jolt job openings and ISM manufacturing; Becareful choosing a side at the opener! Then later at 2 there is the FED minutes. So many Catalyst is why I decided not to swing friday...
I was going over the option order flow the last few days and there are some wild contracts being bought up for 1/6 EXP, both bullish and bearish.
Example - someone place 150k on 257$ NFLX 1/6 puts
Then someone bought 30k On NFLX calls $317
1/6..
I saw similar plays with NVDA and MSFT.
All that tells me is that the spy will either see 360 or 391 this week..
Also you have ADP non farm released WED morning Pre market so however the market plays out Tuesday , becareful on the swing.
QQQ actually looks bullish but it hasn't broken the neckline for an entry.
SMH (Chip sector) Showing similar pattern as qqq.
IWM finish last week right at resistance ..
So yes this looks like a bear flag/Pennant but I've traded these patterns long enough to see that 30% of them can turn into a double bottom.. I think tomorrow we will pick a side, and then the next big Catalyst is Fridays - Dec unemployment and Average hourly earnings...
****A small note... Due to the pop last Friday, the Spy is extremely overbought on the 5min and even on the 10min.. This isn't bearish but in my experience, those conditions make for a horrible long entry***
The yellow resistance is relevant, and if you removed the white resistance and just kept the yellow resistance and white support it would resemble a bear flag... I'm seeing the same pattern on my 4hour RSI (See rsi).
384.50 will be an important number starting off the week.. 384.50 is the resistance of the yellow trendline and also fib resistance If you use these levels
High - 387.41
Low - 374.77
If we break above 384.50 then I like the move to 387-388.
At 10am est tomorrow there is Jolt job openings and ISM manufacturing; Becareful choosing a side at the opener! Then later at 2 there is the FED minutes. So many Catalyst is why I decided not to swing friday...
I was going over the option order flow the last few days and there are some wild contracts being bought up for 1/6 EXP, both bullish and bearish.
Example - someone place 150k on 257$ NFLX 1/6 puts
Then someone bought 30k On NFLX calls $317
1/6..
I saw similar plays with NVDA and MSFT.
All that tells me is that the spy will either see 360 or 391 this week..
Also you have ADP non farm released WED morning Pre market so however the market plays out Tuesday , becareful on the swing.
QQQ actually looks bullish but it hasn't broken the neckline for an entry.
SMH (Chip sector) Showing similar pattern as qqq.
IWM finish last week right at resistance ..
So yes this looks like a bear flag/Pennant but I've traded these patterns long enough to see that 30% of them can turn into a double bottom.. I think tomorrow we will pick a side, and then the next big Catalyst is Fridays - Dec unemployment and Average hourly earnings...
****A small note... Due to the pop last Friday, the Spy is extremely overbought on the 5min and even on the 10min.. This isn't bearish but in my experience, those conditions make for a horrible long entry***
Too much LARGE money coming on OTM puts.. you gotta pay attention when someone places 150k on Apple 120$ expiring 1/6...