Good Morning folks.
SPY , if you look in the daily chart, in the premarket reached 337.5 and is very close to the baseline 339.67. On the daily charts, conditions are not bullish yet. conversion is below the base line and lagging span is below the price 26 bars behind. Also as per the gann square of nine, SPY has completed 90 degrees from 319.80
Also, when I draw the fib retracement from current levels, 150 level is at 348 which is at 135 degrees. So , will fib give up the whole gains and go below 319.80 before it gets to 348- 354 levels. There is a very high possibility of happening unless SPY crosses the base line with conviction.
Also on the weekly charts, SPY In the premarket crossed MA 10 but is below the conversion line at 339.27. It needs to be seen whether it can close above MA 10 and conversion line to indicate it is bullish now.
I am expecting a pull back and would be careful with my longs and adjust accordingly
TC2000 Daily SPY Chart Oct 01,2020
TC2000 Weekly SPY Chart Oct 01,2020
Picks for the day
AMZN made a big move in the premarket. if it pulls back. there is an opportunity to move to 3200
SBUX is still well positioned to go up.
TSLA stock has been consolidating for the past few days as if it is waiting for news. In premarket, TSLA is at 438.60 and needs to break over 441 resistance. if it breaks, we might see a big move above 500.
I would like to add some shorts on stocks that had a huge run like DIOD, DKNG, NFE etc to capture the down ward move of SPY. will wait for a signal indicating SPY is retracing
Wish you a profitable trading day !!!!