Diary of a Financier

SPY & IWV intraday updates: Bottoming process

In Capital Markets on Thu 7 Aug 2014 at 10:02

In real time here intraday, broad equity markets are attempting to form bottoms after suffering almost 5% drawdowns from highs (i.e. flesh wounds).  Via my Squawk Box, I broadcast these fresh signals of a bottoming process at the open this morning…

Russell 3000 ETF ($IWV)

@ $114.7 IWV 15min/daily 2014.08.07

  • 15min: Fulcrum bottom at R shoulder resistance w $114 neckline support & 2x bull divergence
  • Daily: LT bull channel at support after breakdown from rising wedge w $111.6 support target

S&P 500 ETF ($SPY)

@ $192.5SPY 15min/daily 2014.08.07

  • 15min: Diamond bottom breakout w 2x bull divergence
  • Daily: Bounce off $190 resistance-cum-support after breakdown from rising wedge w 3x bear divergence

~~~~

This is the market’s first attempt at a bottoming process since this drawdown started last week, before which I noted the potential for this slide we’ve now experienced:

“More days’ work needs to be done in the 15min to form a sustainable bottom, with $190 resistance-cum-support then dual support >$188 as downside targets.”

I’m watching IWV for a tradable signal, since its fulcrum bottom is a higher probability pattern than the diamond bottom in SPY.  Here are the tradable signals I’m awaiting before adding to equity exposures, either:

  1. $IWV 15min fulcrum bottom breakout now > $115 right shoulder resistance
  2. $IWV 15min fulcrum bottom holds neckline support @ $114

–Romeo

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  1. […] Some updates on the broad market, which I noted had begun a possible bottoming process yesterday: […]

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