Daily charts of SPY or S&P500 were showing a breakdown already from Head and Shoulder formations. All major support lines were penetrated and closed below. On 30 minute chart, H&S formation was nearly 95% complete but not broken down yet. Everything looked set for a bear move. However, markets gapped up today in a major fashion and then sideways action so far. Can someone explain what was the technical reason for gap up today. Was there some other price formation that resulted in the this bullish move. I was going to take a short position yesterday but wanted to wait for 30 minute chart to break down. Glad was neutral when the tide turned bullish. Thanks all.
Considering you only want a "technical reason" while choosing to ignore other reasons not technical related... Eurex DAX futures and others were in an "Inverted H&S" price action and such often gives support to the S&P 500 considering they love to react to each other. However, how long Eurex gives the Eminis support or vice versa...that's anybody's guess. Lesson to Learn - Key markets around the world are more connected than ever before. Thus, don't ignore the price actions of other markets. Mark
Looking at the daily, we had consolidation in the last six sessions, which rested on the double bottom support of May 25 and June 8. The 10am news was the main trigger though.
today sure was a jolt to the technical confidence. hate to guess on the fundamental news and resulting market reactions. the only fundamental news that i watch is FOMC meeting..........and almost always tend to stay on sidelines on that day, no matter what price formation or market internals are pointing to.
What an awfully obtuse question. I answer as I await my fills *sigh* It was what's known as a TRIPLE BOTTOM. Check out Sept. spooz. LOWS: 1037 1037.25 1037.50 Perfectly symmetrical on the daily chart. Perfectly. The numbers could have come out sh*tty and the market still would've rallied. GL!
Do you have any reason to believe any of this stuff has predictive ability? Because I don't. I've made lots of money from technical analysis, but H&S patterns have never ever tested out. They're too nebulous.
You should have been aware of the bear channel, blue, and the range trade between daily levels for the last 6 days. Todays open @ fri close and not below it then breaking the channel was direction.6 days was a long time in tight range. This mkt is moved by different drivers every day. TA is all that's left.
charts dont have predictive ability. they only show you in an easy to visulize format what the market is doing and has done in the past. with that information the trader strives to make an educated guess about what might happen in the future.