S&P 500 - Premarket showing sign of weakness and a down day
Update from yesterday's action. I am still bearish for the next day or so. That was a nice up day right in line with my wave analysis. If my wave count is correct, then today should be a down day.
I looked at aftermarket/premarket trading and the trend is clearly indicating down. I marked it with some notes in the chart. The minor uptrend channel was broken around 4am. It dropped to touch the top of the major down trend channel at 5am. It retested the bottom of the minor uptrend at around 7:30am. Since then it seems to be following the new minor down trend channel, but on the upper side of the major down trend channel.
I really wish I had access to after hours data on trading view, but so goes it with a free account. On my other trading app (drawing tools are no where near as nice) shows me all of the after and main market hours in one continuous chart. The trends are so much easier to see in that data, since there is more after hours trading time then day trading. There is a lot of critical action that happens in those off times.
Hope this helps and good luck trading.
I looked at aftermarket/premarket trading and the trend is clearly indicating down. I marked it with some notes in the chart. The minor uptrend channel was broken around 4am. It dropped to touch the top of the major down trend channel at 5am. It retested the bottom of the minor uptrend at around 7:30am. Since then it seems to be following the new minor down trend channel, but on the upper side of the major down trend channel.
I really wish I had access to after hours data on trading view, but so goes it with a free account. On my other trading app (drawing tools are no where near as nice) shows me all of the after and main market hours in one continuous chart. The trends are so much easier to see in that data, since there is more after hours trading time then day trading. There is a lot of critical action that happens in those off times.
Hope this helps and good luck trading.
Commentaire:
As of 10:51am, the SPX is making me look like a fool.
Trade fermée: ordre d’arrêt atteint:
Well that was completely unexpected and stopped out my VXX. I verified my wave counts with several other sources so I am a bit confused.
The thing that I find interesting, is the current rally from the low yesterday looks to be in 5 waves. My understanding is that up trends only happen in 5's when we are in a motive wave and not a corrective (5 up and 3 down). Corrective waves have up trends in 3 waves and down trends in 5 waves.
I checked against the rally after the trade war "crash" and we have already passed its corrective wave time frame (0.24*motive wave length).
The clear breaking of the down trading channel is also a signal of change. It is highly possible that the corrective wave has completed and we are in the first minor motive wave for the next major motive wave. Or, this is one major fake out.
The thing that I find interesting, is the current rally from the low yesterday looks to be in 5 waves. My understanding is that up trends only happen in 5's when we are in a motive wave and not a corrective (5 up and 3 down). Corrective waves have up trends in 3 waves and down trends in 5 waves.
I checked against the rally after the trade war "crash" and we have already passed its corrective wave time frame (0.24*motive wave length).
The clear breaking of the down trading channel is also a signal of change. It is highly possible that the corrective wave has completed and we are in the first minor motive wave for the next major motive wave. Or, this is one major fake out.
