SPY/QQQ Plan Your trade 7/12 - Carryover Pattern

12 julToday's Carryover pattern should be very interesting. Do we carry over the deep selling pressure from yesterday or do we reject the downward price trend and revert back to the previous bullish trending.

I expect a reversion back to the bullish trending setting up today. If the overnight price action were to continue downward today, the emotional selling pressure from yesterday would have been more evident.

I believe the price will attempt to find support today and could move into a short squeeze later today - setting up a possible recovery rally above $565 on the SPY today.

Of course, it is almost impossible to accurately predict future price trends, so I'm doing my best as we see this massive volatility hit.

Remember, I'm trying to help you learn to become a better trader by watching prices, learning the techniques I try to teach, and applying the best techniques possible to keep you on the right side of the price trend.

Of course, if we do see a rejection of this downward price move, it will become evident before Noon ET. If not, we may be in for an even deeper downward trend.

This is why I clearly suggested traders learn to allocate funds properly. Learning to reduce trade sizes while volatility increases is critically important—unless you like blowing up your account.

So, buckle up.

12 jul

Comentarios

Take a look at this rally, folks. Wow.

I know I'm only human, but I suspected yesterday's selling was more emotional than technical.

I take my lumps like all traders when I'm wrong - so I try not to be wrong that often.

Let's see how this plays out. Remember, my initial analysis suggested SPY would target $568~570 by Monday/Tuesday next week.