SPDR S&P 500 (SPY)

[imiloa]

fwiw, below is the 2min chart i was watching thurs.
i checked out midday to prep for NYE festivities
so didn't watch the afternoon.

but here are the signals i see in it.

opening drop confirmed by both ADX & Awe being increasing bearish in first 15min.
i remain wary of trading in first 30 min of day (til 10am)
but the signal was strong and following through from prior day.

2min Awe starting shifting bullish early in the drop
but ADX was still gapped, which kept me in puts through the drop.

re: inflection to switch from puts to calls:

with my trading style from 2014
i would have focused primarily on RSI & STO,
watching for them to both come out of OS which happened at the first blue line.
this would have been a pretty perfect signal for thurs.

instead, i was primarily watching Awe & ADX.
and eased out of puts as ADX was converging bullish while Awe crossing positive
and closed all puts at those crossings (2nd blue line).
this was a late signal, so i am going to track RSI and STO more closely again going fwd.

re: exiting calls, the optimal signal would have been:
RSI & STO both dropping out of OB
while Awe dropping bearish (3rd blue line).

tho, a more reliable general purpose signal
adds the ADX bearish cross (4th blue line).
again a little late, but more reliable.

the 5th & 6th lines are at ADX crosses as well
showing ADX's utility there, too.

i wasn't following the chart closely after exiting calls around noonish.
guessing i would have ejected at the 6th line
and missed the final drop entirely,
which is fine with me.
imo, way too late in the day to be flipping weeklies
unless ADX/Awe a painting strong trends into the close.

sidenote, MFI (money flow index) combined with RSI & STO was a good indicator on thurs, too.