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Big Move On The Horizon - Guess As To Which Direction?

October 03, 2012 – Comments (2) | RELATED TICKERS: SPY

I don't do a lot of mid-day posts to highlight market behavior, but we were on a very nice uptrend on the day when we got the sudden 5 point move in the S&P without cause in just a matter of seconds/minutes. But there is a chart that we should be watching and that is the SPY 30-minute which shows an incredible triangle that is signaling reversals like clock-work.  

The big reversal that we suddenly saw was off of the upper band of the ascending triangle, which tells me a lot of big  money and funds are watching that same price pattern. 

Be ready to act... if we break to the downside, you'll likely want to do a major tightening of your stop-losses on your longs, and if it is to the upside, the same should go for your short positions. 

Either way, I think we breakout of this triangle pattern sooner rather than later. 

Here's the SPY chart pattern.