Pesky 50-SMA

The market (SPY) ran into the pesky 50-SMA and was pushed away ending the day with a long wick at the top and a very small body. The candle formation “Inverted Hammer” is a sign the sellers outnumber the buyers unless something changes overnight there is a high probability the next day’s open is lower. The failure at the 50-SMA is a Blue Ice Failure pattern and requires a qualified bullish reversal pattern to challenge and overcome the 50-SMA.

The downtrend is still in play with $259.00 acting as support for now. Price has now drawn a low to a high and today will draw a lower low. Watch the chart for the next clue to a bullish bottom construction or soggy bottom fall out. Looking at the 4-hour chart, we might be drawing a higher low, with follow-through over and a test of the $271.60 area might encourage the buyers to take another run at the pesky 50-Sma

►Featured Trade Ideas

LULU printed a Bullish engulf two days ago and posted follow-through yesterday testing a multi-year high. LULU has the potential of reaching $100.00 or more. LULU has been trending and recently started to consolidate and has met a high number of our conditions for a possible trade. Learn more about how to trade this trade and others with Hit and Run Candlesticks starting at 9:10 ET in the live Trading Room #1

►Learn the Power Of Simple Trading Techniques

On December 26, Rick shared WTW as a trade for members to consider and how to use the trading tools listed below. Currently, the profits could have been about 46% or $2345.00 with 100 shares. Using our Simple, Proven Swing Trade Tools and techniques to achieve swing trade profits.

Candlesticks • Price Action • T-Line • T-Line Bands • Support • Resistance • Trend • Trendlines • Chart Patterns • Buy Box • Volatility Stops • Profit Zones • Entry Zones • Protective Stops • RBB Rounded Bottom Breakout Strategy • Pop Out of The Box Strategy • Pinball Strategy • Trade Planning… Learn More

►The VXX short-term futures

The VXX is all over the place, the 200-SMA with a doji yesterday well above the downtrend line. While the VXX chart is in a bullish status, I do not believe it is not a buyable chart right now based on our terms.

►Rick’s Swing Trade ideas

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Rick Saddler is not a licensed financial adviser nor does he offer trade recommendations or advice to anyone except for the trading desk of Hit and Run Candlesticks Inc.

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