Today looks like a real reversal. The VIX painted a reversal candle, new lows were off the charts, the SP 500 hit weekly resistance at the 50% fib level, and many other indicators were at tops. This was accompanied by strong price action across the board and very high volume. I managed to buy some SPY calls near the open of the day and expect that a target of 126 is probably reasonable. However, risk management is always priority.
Interestingly enough, on the SPY 10-minute, two harmonic patterns formed (bullish crab and bullish Gartley). You can see them on my StockCharts list.
I also like XLE for a short term trade maybe even up to the 200 MA. It has formed what is called a "2B" pattern from Trader Vic.
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