Tuesday, February 4, 2014

SPY trading gaps

Trends end at supply or demand of the larger time frame and gaps might bounce off a trend line. Traders need proper out look and must look for the larger warning signs.  You will proceed for a period of time in that direction , but eventually end at supply.  Trading is the same way you need to learn charts and suppy and demand areas. You stop impulses at the walls formed from larger time frames. Gaps can take time to fill many traders do not trade the large gaps up or down. The S&P 500 SPDR (SPY) is essentially a passively managed, closed end mutual fund that allows you to buy and sell the stocks that make up the venerable S&P 500 Index. It does have large gaps from time to time mainly from overseas trading and news that came out over night. Pulling back the trends on our dueling channels, you can see the 'slope of hope' that the bulls continue to point to. Until such time that trend channel breaks look for green candles to form and change the trend.
SPY trading gaps