Support Is Holding

**These are my thoughts on the SPY ETF in my Daily Trade Ideas which includes many, many more charts and setups. Subscribe to my nightly Daily Trade Ideas on the right to see the rest of this letter.**

“A goal is a dream with a deadline.”  Napoleon Hill

Friday saw a strong bounce for markets off support levels but we are still seeing very choppy action for the most part.

Some small quick trades can work but this market isn’t one to bet the farm on.

SPY May 4, 2015SPY bounced off the lower end of this long triangle once again but is still range-bound.

Let’s once again see what happens.

If we break above 211 on heavy volume, that would be very positive or a move and close under 209 would be negative.

Strong volume is really needed to confirm the move.

This pattern does suggest a breakout higher but patterns do not always work, otherwise, none of us would ever have to really work again.

Trading is a game, the best game, and trying to find high probability setups is my game but they don’t always work.

Enjoy your weekend.

Warren

Leave a Reply

Your email address will not be published.