When Will The Selling Stop?

At 6:30 AM EST this morning the SPY was sitting at $258.79, the big question today will be “When will the selling stop”? The simple answer is when the buyers get in the buying mood. If we open today near the $258.70 area, we will be at or near the. Dotted Deuce. Over my years of trading, I have used the Dotted Deuce and 200-SMA as profit zones, support and resistance. There is a very good chance we will see tradeable action around the Dotted Deuce and the 200-SMA. Remember to be patient and wait for the buy signals and chart setups.

About a week ago in the trading room, we spent some time talking about how the SPY was getting too far from the 50-SMA and that was not normal, something had to give. Now let’s consider the weekly chart and Fib lines. Note that last time the SPY was near the 200-SMA (Mid Feb. 2016). Set a Fib line on the lows and draw to the most recent high. The SPY is currently flirting around the 23.6 retracements. The point I am making is price has pulled much too far away from a major moving average like the 200-SMA for a long-term weekly chart.

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On November 15, Rick shared ARNA as a trade for members to consider and how to use the trading tools listed below. Currently, the profits could have been about 55% or $1400.00 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

Have exploded hitting $60.00 plus pre-market this morning, note that is over the weekly 50-SMA.

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Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

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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