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Related Articles
Article from 4.19.13 – “Market Correction with Warning Sign”
Article from 4.27.13 – “$IWM Researching 13 Years of H&S Reversal Formations”
Article from 4.30.13 – “$SPY Trading at a Pivotal Level”
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4.30.13 Tuesday
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Entered Bearish Positions @ $207.69, $208.78, $210.80
(Last three trading days)
I faced $MDY’s raging bulls head-on because..
- “Volume must confirm the trend” and in this case, it did NOT
- It’s been putting in flat lows as I talk about the logic on this video.
- Continually forming bearish divergences on MACD, Stoch, RSI and MFI.
- Weekly oscillators at extreme overbought status and now rolling over
- Analyzing other indices lead me to believe that the market is topping out (which I’ve been talking about it since the mid April. Click here for the article)
- I don’t follow the crowd
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5.1.13 Monday
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Triple Top Reversal Formation
Last two weeks, bulls have forgotten that bears exist (recent volume spikes have been caused by the bears) as they continue to rally higher with declining volume. Bears have put in flat lows twice (see arrows) and kept the bulls from making another higher high today. I am little bit disappointed in the selling volume today though it is much higher than last 5 trading days but I am impressed with the candle pattern that put in today (1 Black Crow reversal: one of the strongest candle reversal pattern behind island reversal). I expect bears to push it down this week and next with increasing volume to about $201 to test that low and as it starts to come down, it will start to form triple top reversal formation. Triple top will be confirmed when it breaks below $201 support.
One thought on “Facing $MDY ‘s Raging Bulls Head-On”
what’s your take on today’s action? does this invalidate the triple top formation? surely there will be more follow through after a strong push-up like this or at least a retest of the high.. what’s your timeline on the spy correction to 154?