Sometimes I write things, and when the inevitable happens, Not only I am proud of myself, but also surprised. Everyone who have been in the market long enough knows that everything that goes up, usually comes down much faster. Some of us like to refer that as the elevator effect.

We are now set to open below the Fibonacci level of 151.47 (truth is that this was a projected Fibonacci Level that I did according to previous moves in the $SPY). If this pullback is confirmed, then I will be able to draw a more realistic Fibonacci level, and be more accurate. I am looking for a 2.5 to 3% pullback, which from the highs would put us around a level of 149.44 (for a pullback of 2.5%) and 148.68 (for a pullback of 3%).

The $NYMO finally had a decent impact, and dropped to a more realistic level which will help me figure out when the pullback will be over. Meaning it will most likely go under the oversold territory. More of that in the future.

$SPY 1st support is 149.86, 2nd support 149.43 and 3rd is 148.90.

$SPY 1st target is 151.32, 2nd is 151.83, 3rd is 152.32, and 4th one just for fun is 152.74.

Trade what you see not what you think.

You Might Like

  • The rise of the retail trader in the stock market.

    The Retail Trading Revolution: How Small Investors Are Reshaping the Stock Market

  • fading the gap

    Fading the Gap: How Large Overnight Moves in SPY and QQQ Play Out During the Trading Day

  • how to trade a bear flag

    How to Trade a Bear Flag