Inverted head and shoulders on the SPX?
- Thread starter fantastic4
- Start date
Well, the VIX just didn't pop with it all did it? We're sitting right on support, and so far futures aren't going anywhere. Tomorrow, could show a nice pop!
We have one Delta NET LONG holders zone at 819.75 to 817.00 (from 2/3 and 2/5 trading action) that has moderate levels of resting inventory. Next we have a MAJOR area of resting inventory with the Delta NET LONG holders zone at 800.75 to 797's.....it is this ZONE which is our current significant line in the sand. If the resting inventory in this zone is not defended and the market trades through, we will be on our way to rush down and make new yearly lows imo per Auction Market Theory!
Both the zones should be good for a bounce or two prior to any bust, and yesterday we had the 819.75-817.00 zone defended with a quick bounce off the 820's. Today if price trades back down to the 819.75 level area, be ready for "reactive" price action (rapid bounce or bust as price gets into this zone). We will for sure have highly reactive price action at the lower Delta zone from 800.75-797's.......price action WILL accelerate with the initiated buying or selling that will activate as this zone is entered!
Remember, price likes to trade to SIZE (areas of resting inventory), so in those zones we will get decisive bounce or bust price reactions (INCREASED initiated buying or selling that CAN BE tracked with Delta).
Enjoy the trade day and GOOD FORTUNES!
BTW, my last targets for my 872.50 entries are set at 817.50 and my previously held 873's/874's entries are patiently waiting for profit targets at 803.00 and 793.00
Both the zones should be good for a bounce or two prior to any bust, and yesterday we had the 819.75-817.00 zone defended with a quick bounce off the 820's. Today if price trades back down to the 819.75 level area, be ready for "reactive" price action (rapid bounce or bust as price gets into this zone). We will for sure have highly reactive price action at the lower Delta zone from 800.75-797's.......price action WILL accelerate with the initiated buying or selling that will activate as this zone is entered!
Remember, price likes to trade to SIZE (areas of resting inventory), so in those zones we will get decisive bounce or bust price reactions (INCREASED initiated buying or selling that CAN BE tracked with Delta).
Enjoy the trade day and GOOD FORTUNES!
BTW, my last targets for my 872.50 entries are set at 817.50 and my previously held 873's/874's entries are patiently waiting for profit targets at 803.00 and 793.00
Quote from AMT4SWA:
We have one Delta NET LONG holders zone at 819.75 to 817.00 (from 2/3 and 2/5 trading action) that has moderate levels of resting inventory. Next we have a MAJOR area of resting inventory with the Delta NET LONG holders zone at 800.75 to 797's.....it is this ZONE which is our current significant line in the sand. If the resting inventory in this zone is not defended and the market trades through, we will be on our way to rush down and make new yearly lows imo per Auction Market Theory!
Both the zones should be good for a bounce or two prior to any bust, and yesterday we had the 819.75-817.00 zone defended with a quick bounce off the 820's. Today if price trades back down to the 819.75 level area, be ready for "reactive" price action (rapid bounce or bust as price gets into this zone). We will for sure have highly reactive price action at the lower Delta zone from 800.75-797's.......price action WILL accelerate with the initiated buying or selling that will activate as this zone is entered!
Remember, price likes to trade to SIZE (areas of resting inventory), so in those zones we will get decisive bounce or bust price reactions (INCREASED initiated buying or selling that CAN BE tracked with Delta).
Enjoy the trade day and GOOD FORTUNES!
BTW, my last targets for my 872.50 entries are set at 817.50 and my previously held 873's/874's entries are patiently waiting for profit targets at 803.00 and 793.00
AMT,
From my understand on reading your post- There are a lot of NET LONG HOLDERS of the contract at those prices. They either support the market by buying more (effectively creating what commonly known as S & R) or they have get out and go neutral- the selling will cause prices to drop to the next NET LONG HOLDERS zone.
Yes.....so if the resting inventory BAILS (the holders SELL out of their remaining HELD LONGS) then you will see an ACCELERATION through that zone with what is INITIATED selling (a support area bust). If the holders defend their resting inventory, you would then see new INITIATED buying in the area of the Delta zone.......you got it!