Good morning all, its Tuesday September 22nd and based on the futures action, its going to be an ugly day at best. As I write this, /ES is currently off by 30.75 handles. As to why this is, I have no fucking clue. The headline right under “DOW FUTURES DOWN ABOUT 1.5 PCT,” is something about Volkswagen not being able to meet emissions standards. Is this why? Possible, but who really knows and who really gives a shit? All I know is what I see, and even at that I only believe about 1/2 of what I see and nothing that I hear. So, lets take a look at the $SPY charts….
First off, here’s the daily chart:
As you can see from the chart above, we were trading in a 10 point range for the better part of the year, from January to August. Somewhere at the end of August we broke out of this range to the downside. Now I don’t claim to know much when it comes to the stock market, especially when talking about broad indices, but what I do know is that once a trend or a range has been broken, whether it be to the upside or down, we usually have to retract to the price and retest it before the new trend continues. Just look at some recent breakouts or breakdowns from a week or two ago and I can almost guarantee you that the price retested the highs/lows…..
So as we see here on the SPY chart, on 9/17 we were a few pennies away from that big gray box. Yes ladies and gents, that was the retest of the range…..and now we head lower…..
Have a great day!!
Also….here are the weekly and monthly views if your at all interested in staying in the market for more than a day….