Wednesday, November 9, 2011

A War Is Coming

This blog has nothing to do with war. I am not a politician, I am a trader, and while I have strong opinions regarding political events, they have zero to do with each other. But hey, at least I got your attention. Anyways, I just wanted to show you a quick 60 min chart of the $SPY. As you can see, and as the legendary trader and amazing person @traderstewie pointed out on the S&P 500, we formed a massive head and shoulders top on the $SPX 60 min.

I noticed a very similar,pretty much identical developed on the $SPY. Well, obviously they are similar, the $SPY mirrors the S&P500. Anyways, I just wanted to point out the power of reference points. What is the neckline of this massive head and shoulders pattern is also the UPTREND LINE FROM THE LOWS OF THE YEAR. As you can see, reference points represent significant points of stock changing hands, and are often relevant for longer than we think.

1 comment:

  1. I am not so good at 60 minute charts (more of a daily guy) but looks compelling. Especially after today!