Good afternoon everyone, this should have already been made clear by my mid day email and blog posts as I stated in the email this morning that the RSI 1 system would exit while the SPY system would not. One fun thing I'm working on is adding the RSI 2 system to a basket of about 15 ETF's, if the results are good I'll follow up with you.
Regarding the market, as we thought would happen price followed through on yesterday's rally breaking out of that coil-like pattern in the morning with a gap. Price rallied for about the 1st hr then made a high for the day, proceeded to trade sideways into the afternoon before giving up some gains the last 2hrs of the day, still closing higher.
The 2nd attached chart is a 60 min view of the SPX that I discussed last night and today on the Trading Community. Today price got slightly into that open gap and stalled at the downtrend line connecting multiple data points. I also added a parallel line to to the bottom - I like this view a lot nice and clean. The hope for the 'bulls' is some kind of higher low to now establish on this pullback. If swing long a logical area for a stop would be the higher lows from yesterday. That said I would like to see price remain above that coil pattern below and not fall back below the coil trendline. The 'Bulls' ultimately need to see 5 waves up and for price to break through that resistance zone. Tomorrow morning we have the Jobs report