A Doozy Of A Set Up

A compelling Gann sell setup is on the table.

On Monday, the SPX carved out an outside up day, which suggests upside continuation.

However on Tuesday the index immediately dove below Monday’s low.

Now there are 2 consecutive lower lows on the table.

Trade below Tuesday’s low today will turn the important 3 Day Chart down.

The 3 Day Chart is one of the ways in which I tell the Line of Lest Resistance.

The 3 Day Chart has turned down only ONCE this year on March 8th. It defined a low.

IF it should turn down today and we don’t get traction and instead see downside follow through, the market will be talking.

Risk will be rising and caution warranted.

Interestingly, we are precisely 180 degrees opposite from October 9th where the SPX closed at 2880.

Yesterday, April 9th the SPX closed at the same region.

On October 10th the SPX waterfalled 95 points.

Set ups are only setups. They need to trigger.

As traders we should be in the interpretation business not the forecasting business BUT speculation is anticipating the anticipators and capitalizing on the market when it turns.

The market turns on a dime. Most traders cannot.

Consequently, when the market is stretched and overdue for a pullback such as it is now and there is a

Setup on the table a good short side opportunity may be on the table to capitalize on.