SPY (S&P 500 ETF) is currently facing significant challenges and there is a substantial possibility of it experiencing a collapse in the near future, days. This is indicated by the emergence of a troubling Head and Shoulders pattern, which is a reversal pattern. Notably, there was a substantial engulfing candlestick formation accompanied by high trading volume observed yesterday, indicating a trend reversal. The SPY also encountered a strong resistance point at its 50-day Moving Average.
All signs suggest that the SPY could potentially undergo a steep decline toward a significant support level referred to as "BigRed," which corresponds to the 200-day Moving Average. This level also coincides with an important trendline.
Furthermore, the SPY's price action is currently forming a bearish pattern known as a rising wedge, adding to the negative sentiment. The MACD (Moving Average Convergence Divergence) indicator is also confirming the continuation of the downward trend.
Taking into consideration the broader market context, with DJIA (Dow Jones Industrial Average), IWM (Russell 2000 ETF), and XLF (Financial Select Sector SPDR Fund) - check my analyses from yesterday - already breaking key support levels and displaying strong bearish signals, the likelihood of the SPY experiencing a collapse in the coming days or weeks seems highly probable.
All signs suggest that the SPY could potentially undergo a steep decline toward a significant support level referred to as "BigRed," which corresponds to the 200-day Moving Average. This level also coincides with an important trendline.
Furthermore, the SPY's price action is currently forming a bearish pattern known as a rising wedge, adding to the negative sentiment. The MACD (Moving Average Convergence Divergence) indicator is also confirming the continuation of the downward trend.
Taking into consideration the broader market context, with DJIA (Dow Jones Industrial Average), IWM (Russell 2000 ETF), and XLF (Financial Select Sector SPDR Fund) - check my analyses from yesterday - already breaking key support levels and displaying strong bearish signals, the likelihood of the SPY experiencing a collapse in the coming days or weeks seems highly probable.
Consistency is the key of success....
Yes, indeed bear market rally is over!
On 18 Sep SPY broke down from a symmetrical triangle and yesterday we had a powerful and strong break of the neckline. The right shoulder took longer than I assessed but the results will be the same. We will drop like a rock towards 4000