Saturday, March 21, 2020 7:50:13 PM
Hi Jeff, I wanted to share this video. When I look at what's going on with VIX the last few days, market down Friday 4% and VIX down 8% that's telling us something.
Maybe a bounce, but obviously no one wants to talk bounce at this point.
I don't trade Elliott wave, but am interested in every aspect of patterns, so I do like to look at this guy occasionally to see what his take is on things.
Talk was that we might get an announcement on a stimulus package on Friday, but it didn't come, and now they say that potentially they might reach an agreement this weekend and vote on Monday.
https://www.msn.com/en-us/news/politics/coronavirus-economic-relief-package-could-total-2-trillion-kudlow-says/ar-BB11vH0U?ocid=primentp
One of my favorite trades is a trend line break off of an RSI divergence. I marked the most recent divergences on the 5 minute SPY chart, and we can see that there are a few.
Then I look to see if the MACD can get above zero.
Not all RSI divergences lead to a good bounce. Notice the pink line instance #2. Not a real deep RSI and it could not get above the pink trend line that was forming at the time.
That brings us to Friday. There is a potential for a divergence setting up. Still need to see confirmation of that if and when it bounces. Next we would want price to get above the blue trend line followed by the RSI getting above 50 and the MACD getting above zero.
There is now a longer term green trend line that is important if we want to see a bigger bounce.
15 minute chart shows a divergence, not real crazy that the RSI is going so low again. A stand at close to a double bottom without going back down to the price trend line on the bottom would be bullish.
The above chart is what I was seeing on LABU last week.
TVIX 60 minute chart finally had an RSI break below 50. For it to stay up that high for so long is amazing. Now we are starting to see some backing off, to me if we were to see a bounce, this would be the time.
Maybe a bounce, but obviously no one wants to talk bounce at this point.
I don't trade Elliott wave, but am interested in every aspect of patterns, so I do like to look at this guy occasionally to see what his take is on things.
Talk was that we might get an announcement on a stimulus package on Friday, but it didn't come, and now they say that potentially they might reach an agreement this weekend and vote on Monday.
https://www.msn.com/en-us/news/politics/coronavirus-economic-relief-package-could-total-2-trillion-kudlow-says/ar-BB11vH0U?ocid=primentp
One of my favorite trades is a trend line break off of an RSI divergence. I marked the most recent divergences on the 5 minute SPY chart, and we can see that there are a few.
Then I look to see if the MACD can get above zero.
Not all RSI divergences lead to a good bounce. Notice the pink line instance #2. Not a real deep RSI and it could not get above the pink trend line that was forming at the time.
That brings us to Friday. There is a potential for a divergence setting up. Still need to see confirmation of that if and when it bounces. Next we would want price to get above the blue trend line followed by the RSI getting above 50 and the MACD getting above zero.
There is now a longer term green trend line that is important if we want to see a bigger bounce.
15 minute chart shows a divergence, not real crazy that the RSI is going so low again. A stand at close to a double bottom without going back down to the price trend line on the bottom would be bullish.
The above chart is what I was seeing on LABU last week.
TVIX 60 minute chart finally had an RSI break below 50. For it to stay up that high for so long is amazing. Now we are starting to see some backing off, to me if we were to see a bounce, this would be the time.
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