Chart Update, page-40

Oh no not another running commentary about the intra-day SP fluctuation please. I thought this was a chart thread but couldn't find a chart anywhere. So I thought I would post one.

I have added one of H00ts currently favourite pattern indicators to the chart, an Andrew's Pitch Fork. Doesn't look too good to me, but I wouldn't take much notice of it. The break of the horizontal channel low occurred yesterday on average volume, but the signal to go short didn't occur today (i.e. a lower Low), and the SP has moved back up into the support area. I hope it stays in this area above 972c. The gap wasn't closed (spooky-scary). Both the stochastics are now rising from the oversold area so hopefully SP strength should follow.

One other thing everyone should note is that the volatility of the SP has increased dramatically. I use a ten period ATR(10) to get a feel for relative volatility (see the red line in the panel above the Volume panel). Back in Feb 2018 the ATR was around 28c, while currently we have a figure of 58c. Volatility has risen dramatically. Markets, including the Professional Groups do not like high volatility. I'll be waiting  until this high volatility is reduced back to historical levels and the new SP direction is determined before I take any new long term positions. Of course if you are a short term CFD Trader or a Day Trader the exact opposite applies. These traders love volatility. So if you intend to trade A2M in the near future you now know who you will be competing with IMO. Good luck!


Note that todays SP bar is as at 12:00.