≈ Increasing Supply. ≈
Here’s a pro tip on chart reading: The relationship between the last two pivots will tell you more about the short-term trend direction and momentum than anything else. Whether they’re rising or falling will reveals who’s in control of the trend. September and October have lived up to their volatile reputation. If you haven’t noticed, the market’s trend structure has changed. Look at the last two pivot lows and pivot highs.
Late-day selling yesterday pulled SPY down nearly 0.75%, resulting in the second straight lower pivot high. As much as I want to be optimistic about a fourth-quarter rally and bullish finish to the year, I simply can’t. The technical don’t allow it – not yet, at least. So for optimism to flourish, we need to stop this depressing pattern of lower pivot highs and lows.
If you’re wondering what we mean when we say that “rallies are suspect” in a downtrend – look no further than the past four trading sessions. On Wednesday and Thursday last week, prices were ripping higher, making some wonder if that was the bottom. And then, on Friday and Monday, prices fell right back down – handily rejected at the 50-day moving average.
Based on the near-term performance, it looks like the market isn’t yet ready to depart Bear Country.
Chart of the Day
SPY Lower High
Another leg lower has begun, and another lower pivot high is in place. Credit goes to bears for maintaining their dominance. Now the question is where the next pivot low forms. Will it be higher, equal to, or lower than the previous one ($428)?
Video of the Day
Onboarding With Coach Frank
Each week Coach Frank walks new members and visitors to Tackle Trading through all of the features that Tackle Trading has to offer. Watch the video above if you want to check out last night’s onboarding session with Coach Frank.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Coaches Show 8:30 PM EST
Join us every Tuesday at 8:30 PM EST for the Coaches Show! Tonight Coach Gino and Greg will be hosting the event.
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.