SPY Pennant Chart Pattern | August 17

The majority of the S&P 500 closed positive on Friday and the advance/decline line was strong.

All systems are go right? No. Not yet. The SPY pennant chart pattern that began the week of July 6 continues to coil. Very light volume on Friday as price action consolidates is a good sign we will break out with a nice increase in volatility.

Two of my top stocks to buy today are GOOG and TSO, AET broke out on Friday and has room to go.  On the short side I like BIIB and GPS.

Stock Market Today: Map of the S&P 500

(click the map for a full view)

SPY Pennant Chart Pattern

Day Trading Game Plan: The SPY ETF Chart

SPY traded above the open for most of Friday and closed near both the 20ema and the 50sma as resistance. Very light volume on a summer Friday, hard to get excited about a strong close without much participation. The 6 week pennant chart pattern continues to form…

(click the chart for a full view)

SPY Pennant Chart Pattern

Stocks to Trade | Monday August 17, 2015

Pete’s Notes:

  • Utility stocks continue to be strong.
  • No bias at all from the financial stocks.
  • AAPL broke support but a choppy indecisive week. A good one to keep on the list for the consistent average true range.

Charts in Focus

Aetna Inc. AET

AET had a strong close on Friday with above average volume. a gap-fill would be a nice $6 target just below $126.

(click the chart for a full view)

spy pennant chart pattern

Earnings in play today > 1M avg shares:  A, KITE, URBN, EL

Bullish Ideas ATR/Volume/Price: UA, GOOGL, GOOG, HFC, AMZN, AET, NFLX, NEE, HON>107, MA, NKE, VLO, TSO

Bearish Ideas ATR/Volume/Price: gmcr, qrvo, yelp, juno, biib, rrc, myl, uri, dvn, twx, bidu, lyb, m, kss, isis, hot, wynn, utx, clr, oke, cvx, baba, scty<48, nsc, mmm, unp, bhi

Weak Stock Weak Close: rrc, myl, wpz, ttm, isis, cbs, wynn, clr, cnq, scty,

Strong Stock Weak Close: NFLX, VLO

Weak Stock Strong Close: qrvo, yelp, twtr, joy, jd, pwr, bidu, cern, symc, yhoo, nrg, dfs, nsc, grub

Strong Stock Strong Close: HOLX, CDNS, SABR, D, AET, GT, XL, HIG, ADBE, AEP, CAG, AIG

20 day Breakdown: dow, nov, gps, pms, hznp, wynn,

20 Day Breakout: DAL, LOW, LUV, STX, AET, ADBE, DUK, ED, D, VTR, AMT, LULU

2x Normal Volume: SYY

Watch List Longs: AET, MO, HD, TRV, SBUX, HON>107, TJX, VLO, DAL, JNPR, ADBE, TOL>40

Watch List Short: cop, kss, cvx, all, xom, bhi, dow, m, wynn, dd, hpq, lltc, qcom<61, klac ,ntap

Inside days: csco, pfe, twtr, baba, yhoo, nflx, orcl, kss, wmt, twx, hd, aal, sbux, phm, pot, v, dhi, yum, tgt. gpro, mcd, hig, adm, mon, mos, atvi, qrvo, tjx, hcn, feye, gmcr, amzn, cvc, hca, kim, uri, joy, amtd, len, mmm, googl, etfc, fslr, goog, tasr

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SPY Pennant Chart Pattern | August 17

Pennant Chart Pattern | Trading the Pennant Breakout

How to Identify and Trade the Pennant Chart Pattern

Pennant chart patterns are powerful.

A pennant offers us the perfect trade; easy to identify and explosive moves.The key to the trade, is the entry.

Patience is needed for the correct entry. The increase in automated trading creates many false breakouts. The best entry trigger is when the stock “tips its hand” with a fuel candlestick. This is a large green or red candlestick with volume.

A conservative entry is to wait for the first pause after the breakout.

The pennant chart pattern is a build-up of indecision, after a period of volatility. Wide swings in price action develop into lower-highs and higher-lows leading to a point of consolidation.

It’s during this point of consolidation that patience is required for a smart trade.

Continue reading to learn more about this chart pattern

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