Investors remained leery on Wednesday, sending the SPX lower for the fifth consecutive session. Stocks have been weighed down lately by a guarded approach to trading ahead of next week's Federal Reserve meeting. And from daily chart, it also gave a "insideday" doji, which means "it's time for choose a direction".
Chart 1.1 (SPX 5mins)
As I draw on the chart, the past two days 5 mins moving gave a triangle narrowing pattern on the chart, along with higher lows, and lower highs. Its represents that market is "negotiating" buyers and sellers are stuggling can not reached consensus. If the SPX goes up and breakup 3950 level (as in red short line), the buyers might hold the lead. If the SPX goes down and breakdown 3920 (yesterday's low) then trend reversal comfirmed. The emotional indicator "fear&greed" index has already dropped to 58 from 75 in past 2 days but still remains "greed".
Yesterday, I called out TMUS short, NIO long which turns out very profitable trades.
LINK: Correction is complete and wait for call
For today, I will follow the trend, therefore, I won't cheat the "insideday" bar, which means if the market goes down break the low, I'll take some shorts, if the market go up and break the red line I draw, I'll take some long positions.
Talking about set ups, I will pay attention to NIO long, JPM short, XOM long, etc.
Chart 1.2 (NIO daily)
NIO holds this 12.5 level perfectly and since 8&21 EMAs already catching up, I think it gets ready for another rally.
Please feel free to express your ideas and thoughts in the comment section.
As I draw on the chart, the past two days 5 mins moving gave a triangle narrowing pattern on the chart, along with higher lows, and lower highs. Its represents that market is "negotiating" buyers and sellers are stuggling can not reached consensus. If the SPX goes up and breakup 3950 level (as in red short line), the buyers might hold the lead. If the SPX goes down and breakdown 3920 (yesterday's low) then trend reversal comfirmed. The emotional indicator "fear&greed" index has already dropped to 58 from 75 in past 2 days but still remains "greed".
Yesterday, I called out TMUS short, NIO long which turns out very profitable trades.
For today, I will follow the trend, therefore, I won't cheat the "insideday" bar, which means if the market goes down break the low, I'll take some shorts, if the market go up and break the red line I draw, I'll take some long positions.
Talking about set ups, I will pay attention to NIO long, JPM short, XOM long, etc.
NIO holds this 12.5 level perfectly and since 8&21 EMAs already catching up, I think it gets ready for another rally.
Please feel free to express your ideas and thoughts in the comment section.