S&P 500 Index: double top inception.
It's clear how the S&P 500 print an enormous quantity of double top. In the last four years we had 8 of them and only 2 of them took to a crash.
It's also important to notice that a bearish head and shoulders has the left shoulder volume higher than the right shoulder. This is not the case right now (see SPDR S&P 500 ETF TRUST for volume).
You can see many examples by observing the volume in past formations on the SPY chart again.
On of the clearest double top (20 august 2020) was also one of the continuation pattern of 2020 bullrun of the stock market.
That's why double tops are important but they generally show a continuation pattern in the grand scheme of the market. Most of them are succeded by another rally to an all time high for the index.
That said, most of the daily indicators are going toward an oversold position and soon will be completely oversold.
A double bottom could be the end of this bearishness.
From my point of view this correction doesen't looks like a pre-crash formation, but instead a mid-cycle extended correction, which will serve as shake-out for many before a last powerful impulse.
The reality is that the world economy is ready to recover substantially after those years of pandemic, which slowed it down. This was just an "appetizer".
And remember, if the market was due to a crash like C19 (feb/march 2020) it would have already crashed.
Here for you, as always, CryptoSoap!
It's also important to notice that a bearish head and shoulders has the left shoulder volume higher than the right shoulder. This is not the case right now (see SPDR S&P 500 ETF TRUST for volume).
You can see many examples by observing the volume in past formations on the SPY chart again.
On of the clearest double top (20 august 2020) was also one of the continuation pattern of 2020 bullrun of the stock market.
That's why double tops are important but they generally show a continuation pattern in the grand scheme of the market. Most of them are succeded by another rally to an all time high for the index.
That said, most of the daily indicators are going toward an oversold position and soon will be completely oversold.
A double bottom could be the end of this bearishness.
From my point of view this correction doesen't looks like a pre-crash formation, but instead a mid-cycle extended correction, which will serve as shake-out for many before a last powerful impulse.
The reality is that the world economy is ready to recover substantially after those years of pandemic, which slowed it down. This was just an "appetizer".
And remember, if the market was due to a crash like C19 (feb/march 2020) it would have already crashed.
Here for you, as always, CryptoSoap!
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