I was wrong when I said 2 weeks ago that no one could predict where SPY would go down to. Don’t get me wrong. I predicted the October 2018 correction so I’m happy but I’m a self-critical Virgo who is always seeking to do better. In other words, I usually beat myself up long before anyone else even has a chance.
I’ve switched to a new charting tool for the Saturday Show and I was randomly testing weekly overlays of various indicators over the daily chart of SPY and what I found just minutes ago shocked me.
SPY fell down perfectly to its Bollinger Band in the weekly time frame! The dashed lines with arrows are the Bollinger Bands in the weekly time frame overlayed on this daily chart (large arrow points to the lower Bollinger Band).
I missed this because I had not checked the weekly chart on SPY as the sell-off was occurring.
Here is SPY in the weekly time frame so you can see what we saw in the SPY daily chart above:
I’m kicking myself because I missed this. Rookie move. I’m a technical analyst and stock market blogger and yet I still missed this. That means you probably missed it too.
Let’s use this as a learning experience to improve our TA and charting skills. Always check both the daily and weekly time frames on SPY and the other major indices.
If the market moves outside our support and resistance levels in the daily time frame, that’s a screaming signal to check the larger weekly time frame.