Congrats Art. You seem to have a knack for those quick in & out/hit & run type trades. FWIW (and to all), that breakdown on that little 5-minute chart has also caused a bearish crossover on the 60-minute MACD on the SPY, thereby confirming a divergent high in the broad market. That indicates that we’re now most likely looking at a “swing tradable” correction in equities vs. only the quick drop down to the 210.70 level that is listed as my final near-term target on those 5-minute charts.

Looks like some kind of pullback today as you projected.

@lee1 Yes, the 210.70 target on this 5-minute is a near-term target which I might extend, depending on how the charts develop throughout this week. To your earlier question, using a 5 minute or even a 1 minute chart is simply to hone in on precise entry points for long-side breakouts & short-side breakdowns. For example, I will use the daily & weekly charts to identify trend changes & swing trading opps but then zoom down to the 60 minute or even the 30, 15 or 5 minute charts for timing my entries & exits on those trades.

Think of it this way, let’s say there was a large Inverse Head & Shoulders bottoming pattern on a stock in which I was planning to go long for a swing trade. If I were to notice a small bullish falling wedge on the intraday charts that, if triggered, would likely cause prices to eventually break above the neckline on the IHS pattern, then I might go long on the falling wedge breakout, even if it occurred before the larger IHS pattern NL.

Ditto for my exits. If short a swing trade which is approaching one of my targets & I see a bullish falling wedge on the 60 minute charts that looks ready to pop, I might close out my short position early & at the very least, immediately after the wedge pattern breaks out. The shorter the time frame, the more precise the entries & exits on a trade but ONLY if the longer-term charts confirm as I always give a higher weighting to the longer time frames (e.g.- I won’t go long a bullish falling wedge breakout on a 5 minute chart if the stock just broke down below a major support level on the 60 minute or daily time frame).