Intra-Day Action – 22 January 2016

Here today’s action on the S&P 500 as I saw it. I didn’t include everything on the chart (I’d run out of space) but the key is to look at every candle objectively and ask “what is happening here”. If the Bulls win the bar and it’s over a resistance point it should follow through. If it doesn’t something is not working as it should and you need to stay objective and see how the next bar reacts.

Watching the TICK can help you stick with it or bail out at a better moment. For example the sideways consolidation around 12:30. The TICK levels remained neutral to Bullish you should not panic and hit the eject button here.

 

Make a note: W Pattern – Strong odds buy setup out of a base. The Bears had their chance and could not take it lower. Bulls were accumulating in the base and broke out with higher volume.  Pattern works in reverse with an M top or base.

 

16-01-22_EOD-SPY

 

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About the Author Dave Gagne

Founder of MarketInsidersClub.com. President and CEO Dynamic Wealth Financial Inc. Author of Trading Master Plan Subscribe to the MarketInsidersClub Youtube Page here

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