SPY: No Follow Through

Published 11/21/2013, 02:20 AM
Updated 07/09/2023, 06:31 AM

We didn't get any bullish follow-through after the faster time frame (hourly) had a positive fast line change. The '4a' criteria (slow line negative and ticking down with a positive fast line) will always be a suspect entry, if there is no immediate momentum to follow (the momentum is needed to pull the slow line from criteria '4' to '3' and eventually to '1').

A better setup would be for the fast line to turn positive then pull back into a positive slow line before continuing higher.
SPY Daily
Trying to get a jump on the potential higher time frame shift we can add the 15-minute chart into the mix (below, right).

We had an entry in the morning, but rejection at resistance was evident and eventually a fast line/slow line cross was a warning sign for potential time/price correction (also note bearish moving averages). Going into the afternoon we had an either/or scenario (price could have gone either way) take place into FOMC minutes at 1:00pm CT but the selling trigger ended up giving a measured move.
SPY Daily, 65 Minutes, 15 Minutes
Now, if looking for a long entry we can start by waiting for the 15-min time frame to develop more of a bullish criteria (FL > SL with a slow line positive and closer to the zero-line, maybe a 3d to 3a to 1a, similar to what we saw late afternoon yesterday and early this morning).

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