Enlarge any chart by clicking on it.

Unless otherwise specified, ALWAYS use the 15min chart to enter my recommended plays because
CONFIRMATION is a MUST. In other words, you need to see a 15min candlestick that CLOSES beyond
the entry point, then enter when it moves 10cents after the high/low of that candlestick.

Wednesday, October 10, 2018

SPX

The drop the past few days (especially today) wasn't unexpected. For a long time now, I was monitoring two bearish patterns (Rising Wedge and Bump-and-Run as seen below) in addition to the bullish pattern (Bull Flag) that had already been in play. It was for this reason that I did not post the bearish chart setups even though they were activated the end of last week. I did not want to post conflicting patterns given that the bullish pattern had already been in play. I knew one had to be wrong obviously. So I decided to just stay with the bullish pattern since it was already in play and VIX was also in favor of it. But I was very worried because there was no upside momentum. I knew it was just a matter of time before a big drop took place. I was just hoping for the Bull Flag target of 2980 to be completed for me to turn very bearish. But the target was not achieved and the play became invalidated with today's move.

SPX-DAILY III


SPX-DAILY II


SPX-DAILY I
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