Hey traders,
The market is screaming right now, and if you are watching the SPY, you know exactly what I mean.
With the recent PPI data coming in hotter than expected, volatility has been the only constant for most retail accounts.
But while most people are panicking about inflation and rate hikes, the algorithms are looking at something much more precise.
SPY is trading right now at $652.27, and based on the Gravity Zone logic, the floor appears to be set.
Look closely at the chart I just pulled from my screen.
We are currently seeing a Drift of -4.49%, which means the price is significantly overextended to the downside away from the White Dotted Gravity Line at $682.92.
When the Drift percentage gets this stretched, the rubber band usually snaps back.
You can see the price tag hitting that Teal Blue Sky Zone, which we call the Floor, and it is holding firm.
This is exactly how institutional volume traps work. They drive the price into these exhaustion zones to catch retail sellers leaning the wrong way.
I am expecting a pop from here as the price seeks to rebalance back toward that $682 Gravity level.
If you want to see these algorithmic levels on your own charts in real-time, you need the right tools.
The Gravity Zone was built to highlight these exact exhaustion points so you can trade on the same side as the machines.
Click here to secure your access and trade with algorithmic precision starting today.
Best,
Ben
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