Today was another ugly down day and overall the patterns are just that: ugly.
However, they are always ugly before a turn. Based on the price patterns, there is little to nothing to suggest a turn, but I have seen this type of break fail many times. I’ll explain in the video below.
The trendline users are out today showing the breaks and suggesting that means lower. But they will not show you how many times that they have redrawn their lines time and time again.
Trendlines are always subjective since choosing different lows will end the line in different places.
So which points are the right ways and how far back do you go?
Don’t spend a second thinking about it; It wasn’t a question to provide an answer to. It was to point out to you that there is no answer and why trendlines don’t matter.
Simply look to the left to where there is price support.
Anyway, the S&P 500 Index “might” set up a Breakdown Bar Failure (BBF) in the coming days.
I am thinking ahead of what is, and that is good most of the time, but wanted to share my thoughts. It may not happen, but the beginning of the setup is there.
If it doesn’t set up and the markets head lower, odds are you discount what I am telling you right now.
If it does setup and follows through, you will never forget the pattern and that I told you before it happened.
Either way, I am sharing with you something that I have seen happen many times.
So I’m offering you this gem of knowledge. We’ll see if it turns out to be lump coal or a diamond in the short-term (smile).
If you are taking or have taken Master Trader Technical Strategies – MTS, go to the Failed Pattern module and review the BBF.
For best viewing, view the video in full screen
[s3mv fileName=’April+Letters/MarketUPdate_4_3_18.mp4′ fileType=’video’ source=’s3′ width=’800′ height=’450′ splashImage=” preLoad=’Y’ autoPlay=’N’ belowVideoHTML=” cuePoint=” redirectURL=” pauseAtCuePoint=’N’ isSecure=’Y’ bucketname=”]
Thank you for being a loyal subscriber and feel to email us with any questions or comments on anything.
Access Trading Credit Spreads Course here, it’s the best $97 dollars spent to get up to speed fast.
MasterTrader and You Building Your Financial Future Together
Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
Dan Gibby
Chief Options Strategist
Follow Greg on Twitter, YouTube, and StockTwits to get real-time updates and education:
Twitter: @GregCapra
Stocktwits: Greg_Capra
youtube.com/c/mastertrader (please subscribe to receive all the timely stock market updates)
