SPY Charts First Days October

SPY Charts First Days October

 

The underlying condition for the first couple of days of October is that the daily shows a clear Negative Divergence

 

The Hourly

 

SPY hourly chart Oct 3

SPY hourly chart for Sep 26 to Oct 3

 

At point A and C the SPY is rolling over into the direction of the daily Negative Divergence. At point B the MACD is starting a what turns out to be a strong counter rally, based on a Positive Divergence on both the 28 min and 14 min charts.

 

The 28 min Chart

 

SPY 28 min chart Oct 3

SPY 28 min chart for Sep 30 to Oct 3

 

The 28 min SPY charts does show two divergences. At B there is a Negative Divergence and at point A the down trend really takes off. And at point C with the purple horizontal lines a Positive Divergence emerges. Both of these divergences get supported by the hourly chart and they get reinforced by clear divergences on the 14 min chart.

 

The 14 min Chart

 

SPY 14 min chart Oct 3

SPY 14 min chart for Sep 30 to Oct 3

 

These last two divergences that caused big moves this week were best to see on the 14 min Chart. The purple lines at A show the Negative Divergence. This was a strong divergence because it was supported by all charts from the daily down. The Positive Divergence B was strong as well. The really low price catapulted the rally over two days. At the end of Oct 3 a Negative Divergence is emerging, not strong yet. But since there is always still the Negative Divergence on the daily, it might not take that much to start another decline.

 

The 2 min Charts

 

SPY 2 min chart Oct 2

SPY 2 min chart Oct 2

 

Near point A was a good place to sell. The MACD has a negative slant and the shorter red moving average is curling down. Near point D was a good place to buy back in. The same red moving average made a fake move down, but the positive MACD near C should keep you from selling too early. And the Positive Divergence on the 14 min chart points to a rally as well.

 

SPY 2 min chart Oct 3

SPY 2 min chart Oct 3

The day opened with a gap up and continued up. Point A and B were good long entry points. Like the previous day the MACD is showing  weakness D, however longer time frames are still strong.

Author: tedvanderende

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