SP bigger picture analysis
The Bigger Picture
Even as day traders we must stop and evaluate the longer time frame charts. The big picture can provide many clues and help us setup or manage trades in the shorter time frames.
I’ve taken the time to do a pre market evaluation of the daily chart, that i will share with you.
Time Frame: Day
Long Term Trend (6 months):
Long, we have held the March lows and have put in consistent Higher Lows, and we are holding the 200 day MA
Medium Trend (30 days):
Range bound between 871 and 950
Short Term Trend (5 days):
Bearish: We have been losing value (per Market Profile theory), the ADX (strength indicator) is rising while the DMI- is above the DMi+. An indication that sellers are stronger than the buyers.
The market is finding support at the 200 day ma, however this MA continues to slope down, The down slope is due to the fact that there was very little sustained activity above that channel, insufficient to turn the MA to point up.
To correlate that to Market Profile theory, the trades above the mean (200 day MA) have thus far been statistically insignificant, as they have not been confirmed by volume or time.
See you in the chat
Greg
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