$SPY intraday chart review (see notes)

Point and Figure Chart

These are pretty tight ranges; however, we can appreciate fairly quickly that targets are being fulfilled.  Today’s selling into the close did suggest that this consolidation block was distributive.  If so we have a downside target of $218.54-$218.61.  I’m not even sure I would define that as a pullback.  If buyers continue to “buy the dip” or more important, if sellers don’t sell prices will continue higher into $222.

This speculated drop would offer longs a low risk entry on support defined by the lower trendline of the bullish ascending channel (not shown).

PnF ATR.png

 

Block Trades (from DataTraderPro.com)

This is a great tool that visually shows the block trades during the day.  We can see that today’s close was accompanied by several large block trades.  Prices did drift below the “printed” level so I speculate it was selling.  I wouldn’t be so biased and would just say prices are bullish above this level and bearish below.

It is interesting that the point and figure target noted above correlates with the 1st level of support defined by block trades and late dark pool “prints.”

block trades

 

Bar Chart (3-minute)

This is Bullish really.  Prices opened higher and closed above 50% of the daily  range.  That said you have to consider the context of how prices reacted to key levels of support and resistance in the later half of trading.  It looks distributive and correlates with my speculated “dip.”

BAR CHART

Conclusion,  futures are likely to trader lower.  Price may dip after opening to suck in a few more bearish trades.  There is nothing wrong with a quick chase but protect profits.  Traders often confuse observations noted on smaller timeframes and attempt to make an idea work on a longer timeframe.  Forget any bias of Macros.  Price action has been bullish.  If you’re indecisive keep trades small and conserve capital.

Good Luck!

 

 

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