Stock, Option and Futures Trading
Its More Important Than You Think
The range of $130 to $107 is major on the SPY. I know that is a large range but inside of this range is going to tell us the next big move. We could actually even say the $116 to $130 since the $116 is support inside of this range meaning; if $116 is taken out to the downside the chances increase to take out the $107 low but there is one last support between the $116 and $107 that could hold.
If we take out $130 we could go to $155 and if we take out $107 we could fall to $85.
If you follow the blog we have been noting the symmetry supports on major legs and the minor legs. That means there are supports behind us so the odds right here would say we break to the upside but things can change fast.
Over the last two weeks we go from the worst Nov in a very long time to now one of the best weeks to the long side in a very long time. This means the market is making wild swings in both directions and we label that emotional and we have been saying the market can be emotional as it came down to test the 11,200 on the DOW and then back to 11,900. You can see the emotion by looking at the gaps this week.
So the major emotional range is $130 to $107 and the minor range is $130 to $116.
Right here we could see a move down to $120 that looks similar to the move down from $130 to $116.
There is a different pattern that says we do not go down to $120 and we continue higher from here to the $134 level then have a major pullback to the $125.
Next week we might play it in both directions and going forward out six months from right now could be very good trading if you act quick at levels and know where the key levels are hiding. Obvious is most likely not going to work as the market breaks out of this range.