SPY Daily. Bearish flag formation to some degree.
Now with all the Fed flooding I have to take into consideration
that normal chart analysis has to viewed very carefully. We
are witnessing an unprecedented amount of money being pumped into
the markets and Bonds. Do we break the wedge and retest the
lows? Do we go below the lows for a final wash out before a
long term bottom is put in? Do we get small pullbacks and
every pullback gets bought and see new highs? My personal
opinion is get some type of pullback this week and the market
reloads to move up into the big resistance zones on the chart
(290ish to 300 area) in the next several weeks. Markets
almost always overshoot. Then see what the market does next.
Or do we sell off this week and retest the lows?
Because of the aggressive stance of the Fed I am leaning
towards the pullback this week then market gets bid up.
Looking back in history, the majority of bear markets had a retest
or went 19-25% lower from the first low after the initial wave sell
off. But as always price action will determine the
pathway.
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SPY Daily. Bearish flag formation
Posted by ssaffer on 11th of Apr 2020 at 03:41 pm
SPY Daily. Bearish flag formation to some degree. Now with all the Fed flooding I have to take into consideration that normal chart analysis has to viewed very carefully. We are witnessing an unprecedented amount of money being pumped into the markets and Bonds. Do we break the wedge and retest the lows? Do we go below the lows for a final wash out before a long term bottom is put in? Do we get small pullbacks and every pullback gets bought and see new highs? My personal opinion is get some type of pullback this week and the market reloads to move up into the big resistance zones on the chart (290ish to 300 area) in the next several weeks. Markets almost always overshoot. Then see what the market does next. Or do we sell off this week and retest the lows? Because of the aggressive stance of the Fed I am leaning towards the pullback this week then market gets bid up. Looking back in history, the majority of bear markets had a retest or went 19-25% lower from the first low after the initial wave sell off. But as always price action will determine the pathway.