etfmsolutions: The JAWS Pattern ....05.26.15

Tuesday, May 26, 2015

The JAWS Pattern ....05.26.15

Per Saturday's post regarding the narrow band conditions and the expectation for a subsequent biqg move....we got it today and it was an ugly JAWS pattern (see SPY VOXEN chart below). The Ponzo and Pairs models had argued for a bearish opening today and it went from bad to worse with SPY ending at the S6 pivot and the NYAD never showing any buying strength. Tuesdays and Wednesdays following Memorial Day tend to be bearish with a potential turnaround on Thursday. The longer term momentum still looks bullish as long as this drop doesn't accelerate into something more than a modest pullback.

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