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Thread: End Of The Road For This Rally?

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    Price Action Trading Course BrendanEgan's Avatar
    President & CEO
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    Feb 2010
    Chicago, IL, USA
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    Day/Swing Trader

    Default End Of The Road For This Rally?

    If you told me one year ago that the Dow would be over 11,000 in 2010 I would have told you that you're crazy. However one of the first things we talk about in the Advanced Price Action Trading Course is to anticipate market movements and not predict them.

    Taking a look at the daily chart of the $SPY we can see that we just entered into what could be a really nice fakeout scenario. We broke directly above a strong area of resistance outlined on the chart below, then immediately broke back below it and did so on high volume. In fact, the volume we saw on Friday's sell-off was some of the highest we have seen lately. This is most likely due to the Goldman Sachs story, however as I discussed in this blog post it is perfect timing for such a devastating news story to pop up.

    Click Chart To Enlarge
    Click image for larger version

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    Anywho, I will be closely watching the daily chart of the $SPY to see what develops this week as this is going to be a very critical week in terms of where we may go from here. It is also a pretty busy week with news and earnings so it should be a higher volume, more volatile week than we have experienced recently.
    Last edited by BrendanEgan; April 18th, 2010 at 08:18 PM.
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