SPY - Tri-Star Pattern Bearish - About to Find Out

24 thg 9

Very interesting pattern showed up on the charts at the close of yesterday. Initially we had a shooting star, but three in a row? Very Rare indeed tri-star pattern which may sound cool but it is simply a random pattern.

Does this imply a bearish reversal here? Nope!! Do not get too caught up in patterns that randomly appear vs orderflow which is a much better indicator of markets. So where are these levels?

For bulls, need to clear 572 and sustain. This has been an area of selling or where buyers simply dry up.

For Bears, do not want to see 567 given up. Again this is the area where buyers have been stepping in and sellers dry up.

In short, this pattern simply is a result of many market variables. Shorts covering, reallocation of positions, some hype that we had a soft landing, blah blah blah and blah!!! Do not try and put a rational to why the market moves.

Many I am sure are asking, "Goldbug why are you still holding your short, it must be more painful then Kamala's knee pads at a fund raiser?"

Yep, down like $2800 for the trade, but I am looking for confirmation that the market is really breaking out, or that this is simply a fake out. So we get a close above 572, and the next move takes that out, well I'm out.

All to often newer traders will get cold feet and close out a trade right before the move happens. Yep I've done it, still do it once in a while, but over time you tend to stick more to your analysis and wait for confirmation you are wrong.

Going to update Bitcoin as well, it seems relatively bullish here, but maybe not so fast.

On a positive side OLED META and BROS are doing well for us!!