Luna $ Ticks

October 21, 2008

Hello Bears

Filed under: Trading SPX SPY — moontrader @ 3:20 pm

Hold tight to your puts, we’re heading down.

Here’s a pretty simple chart:

Notice how support levels getting tighter as volume decreases. After a choppy day today, SPY headed towards yesterday’s high, but it didn’t make it. At the very end, it tried a little reaction, but all that happened was a close off lows.

As I said yesterday, today we needed to close below DMA 7×5, and that’s exactly what happened:

Ideally, we should go back below DMA 3×3 by tomorrow, to confirm the bearish scenario and increase the odds for a new low for the year. The way the market behaved in the last couple of days, looks like it’s going to happen.



  1. Nice charts. Thanks for sharing your work.

    Comment by Lockness — October 21, 2008 @ 6:28 pm | Reply

  2. I still proudly holding some puts!

    Thank you.

    Comment by tradertom — October 21, 2008 @ 8:18 pm | Reply

  3. Thanx for that! I agree, but believe the majority think otherwise. Good for us!

    Comment by ccrider — October 21, 2008 @ 9:47 pm | Reply

  4. I do believe we are going down but, what I see is an ascending triangle making higher highs and higher lows, it needs to pop out of the triangle to the upside before we go down, well thats what I see, but I do like your charting alot, please keep up the nice work. Thanks.

    Comment by kitty — October 22, 2008 @ 9:57 am | Reply

  5. kitty, I see a descending triangle on the daily chart, and we’re almost in the last movement. Breaking below 90 (SPY), the index will drop another 15 (which is the first leg up from 83.6 to 105.5), and take us to 75… which, by the way, is the low of 2002.

    Comment by moontrader — October 22, 2008 @ 11:49 am | Reply

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