I don't do a lot of mid-day posts to highlight market behavior, but we were on a very nice uptrend on the day when we got the sudden 5 point move in the S&P without cause in just a matter of seconds/minutes. But there is a chart that we should be watching and that is the SPY 30-minute which shows an incredible triangle that is signaling reversals like clock-work.
The big reversal that we suddenly saw was off of the upper band of the ascending triangle, which tells me a lot of big money and funds are watching that same price pattern.
Be ready to act... if we break to the downside, you'll likely want to do a major tightening of your stop-losses on your longs, and if it is to the upside, the same should go for your short positions.
Either way, I think we breakout of this triangle pattern sooner rather than later.
Here's the SPY chart pattern.
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Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>