{"id":42173,"date":"2015-09-13T13:23:43","date_gmt":"2015-09-13T17:23:43","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=42173"},"modified":"2015-09-13T13:27:51","modified_gmt":"2015-09-13T17:27:51","slug":"drilling-down-on-the-sp-500","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/drilling-down-on-the-sp-500","title":{"rendered":"Drilling Down On The S&#038;P 500"},"content":{"rendered":"<p>This weekend I have seen a few versions of this daily chart of the SPY drawn with two lines to offer what appears to be &#8220;symmetrical triangle&#8221;. The idea is that buyers\/sellers are becoming more aggressive and when one group wins the SPY will close above\/below one of the two lines leading to an explosive move. I&#8217;m not a huge fan of the visual as there aren&#8217;t really many &#8220;clean points&#8221; to draw against daily closing prices. In fact, if you did use closing prices the pattern would have already resolved itself to the upside. But there is one thing you can do with this pattern that is instructive and I demonstrate with the second image below.<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/a-triangle-forming.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-42174\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/a-triangle-forming.jpg\" alt=\"a triangle forming\" width=\"587\" height=\"421\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/a-triangle-forming.jpg 788w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/a-triangle-forming-300x215.jpg 300w\" sizes=\"auto, (max-width: 587px) 100vw, 587px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>I draw a horizontal line where the two sides of the &#8220;triangle&#8221; are coming together. What this does visually is show how much of the volume has shifted towards the top of the range in recent trading days. This is indicative of buyers becoming more aggressive. I&#8217;ve tweeted some <a href=\"http:\/\/www.stocktwits.com\/sspencer_smb\/message\/42582031\">30 minute charts<\/a> that shows this as well. The goal of understanding price action is to help us formulate an idea of whether buyers or sellers are in control of a particular market and when that control may accelerate or reverse. By doing so we can tip the probabilities and risk\/reward in our favor for a particular trade.<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/drill-down-spy-daily.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-42176\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/drill-down-spy-daily.jpg\" alt=\"drill down spy daily\" width=\"581\" height=\"427\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/drill-down-spy-daily.jpg 773w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/drill-down-spy-daily-300x220.jpg 300w\" sizes=\"auto, (max-width: 581px) 100vw, 581px\" \/><\/a><\/p>\n<p>Based on the lows of August and the high that followed a few days later more balance between buyers\/sellers would be indicated if the\u00a0SPY were spending more time between 192-194 which it has not done the past few trading days. This is not to say that sellers cannot retake control early next week but as of right now the odds favor a re-test of recent highs&#8230;<br \/>\n<a href=\"http:\/\/twitter.com\/sspencer_smb\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><\/p>\n<p>Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, options, forex and futures. He has traded professionally for 19 years. His email address is: sspencer@smbcap.com.<br \/>\n<a href=\"https:\/\/smbclassroom.clickwebinar.com\/30-trading-habits\/register\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-42161\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/30habitswebinar.jpg\" alt=\"30habitswebinar\" width=\"600\" height=\"305\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/30habitswebinar.jpg 600w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/30habitswebinar-300x153.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>*no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This weekend I have seen a few versions of this daily chart of the SPY drawn with two lines to offer what appears to be &#8220;symmetrical triangle&#8221;. The idea is that buyers\/sellers are becoming more aggressive and when one group wins the SPY will close above\/below one of the two lines leading to an explosive move. I&#8217;m not a huge &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/drilling-down-on-the-sp-500\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":143,"featured_media":42174,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,8,453,1373],"tags":[1313,4628,1068],"class_list":["post-42173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","category-steven_spencer_steves_blogs","category-trading_ideas","category-trading-lesson","tag-1313","tag-drilling","tag-sp"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Drilling Down On The S&amp;P 500 | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/drilling-down-on-the-sp-500\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Drilling Down On The S&amp;P 500 | SMB Training\" \/>\n<meta property=\"og:description\" content=\"This weekend I have seen a few versions of this daily chart of the SPY drawn with two lines to offer what appears to be &#8220;symmetrical triangle&#8221;. The idea is that buyers\/sellers are becoming more aggressive and when one group wins the SPY will close above\/below one of the two lines leading to an explosive move. I&#8217;m not a huge ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/drilling-down-on-the-sp-500\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-09-13T17:23:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-09-13T17:27:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/09\/a-triangle-forming.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"788\" \/>\n\t<meta property=\"og:image:height\" content=\"565\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"sspencer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" 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