I entered a long vol and short spy position earlier this afternoon when I saw this diamond forming as everything we've seen this past week or so has reminded me of the melt up we saw in early June. Anemic volume, lack of buying momentum, etc. etc.
From here we'll have to wait and see if which SMA it finds support on, but it's extremely overextended right now, so it wouldn't surprise me to see it correct down to about 306ish.
More to come.
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Here's a look at the daily. Huge rejection of that trendline again. That 3-year resistance line could have became support, but if not the next support is several points below. Looking at the MACD, if this correction is fairly large and takes more than a few days, it could push the MACD below 0 for the first time since mid-April.
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Okay this is something huge that I just noticed. So the Eurodollar liquidity in the global repo markets has been pretty much the underlying cause of every major crash and correction since 2007, including March. Well ........
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Hit the 312 target, let's see if it holds, there's a lot of momentum here but it could bounce.
Also, the C&H on DUX got invalidated and it gapped below the 20 period SMA on the 4hr chart and is getting close to that bottom trendline
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Posted the wrong screenshot, but it's looking to break downwards
Diamonds are very very strong reversal patterns with immediate targets which are the height of the diamond....