SPY closes all the recent gaps… oh!
Yesterday’s SPY performance was significant, notably about closing and reopening the gaps in recent days. Here we take a look at the significance of these gap closures and an accompanying set of technical indicators which include MACD, Volume Divergence and TD Sequential.
Using the 4H chart, the pink box shows the gap down and the gray and/or white box shows the two recent gap up ranges. Notably, yesterday’s close was significant because it reopened the gap down (pink box) after a failed intraday attempt to close it; this is a bearish indication. Furthermore, two previous gap up ranges (gray and white boxes) were also closed; also a bearish indication.
Furthermore, the MACD just had a cross down on its Signal line and the Volume Divergence had already crossed down some time ago. All these indicators support a down trend.
Using the TD Sequential, since the beginning of October, there have been about two truncated TD Sequential Sell Setup, and one perfected TD Sequential Buy Setup. A failed attempt to surmount the highest closing of that Buy Setup keeps the main trend bearish. And current closing candle is the second of a new Buy Setup indicating that more downside in the bear trend should be expected, at least for the next week.
Do note that, the 4H chart was chosen for analysis as the daily chart was not only volatile but also lacking smooth inter-day transitions.
Hang on peeps…
Using the 4H chart, the pink box shows the gap down and the gray and/or white box shows the two recent gap up ranges. Notably, yesterday’s close was significant because it reopened the gap down (pink box) after a failed intraday attempt to close it; this is a bearish indication. Furthermore, two previous gap up ranges (gray and white boxes) were also closed; also a bearish indication.
Furthermore, the MACD just had a cross down on its Signal line and the Volume Divergence had already crossed down some time ago. All these indicators support a down trend.
Using the TD Sequential, since the beginning of October, there have been about two truncated TD Sequential Sell Setup, and one perfected TD Sequential Buy Setup. A failed attempt to surmount the highest closing of that Buy Setup keeps the main trend bearish. And current closing candle is the second of a new Buy Setup indicating that more downside in the bear trend should be expected, at least for the next week.
Do note that, the 4H chart was chosen for analysis as the daily chart was not only volatile but also lacking smooth inter-day transitions.
Hang on peeps…
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