SPX down to 4560 - Megaphone/doubletop?

17 Jan 2024

Looking at the current daily/4hr setup, it appears that we could have reached a double top or megaphone pattern. The megaphone pattern usually indicates a large move up or down upon breaking out of the pattern. Food for thought on a play once broken out. Also have a negative divergence on the MACD for the double top.

19 Jan 2024

Catatan

We are nearing the top resistance trend line and I will be looking to take a short around the open if it still opens around 479ish this morning.
Interesting that the bill to avoid Gov. shutdown has only passed the house and market jumps up - still needs to pass the senate. Could this be what causes a hard rejection from the top resistance of the structure - it has been in place for a month now? We shall see.

19 Jan 2024

Catatan

Grabbed some daily SPX calls this morning off of yesterdays high of day. Cut them for a 30% gain, but left a lot on the table. The broadening wedge/megaphone pattern still appears to be holding.

19 Jan 2024

Catatan

At the top now... getting volatile for break up or rejection

22 Jan 2024

Catatan

Well, ladies and gentleman... it broke out to close Friday. We will see if the market wants to come back and retest the structure, continue running, or reject. I would think we would at least have a retest before rocketing up. I will do some more analysis and look at individual stocks and see if anything stands out!