SPY channel bounce

21 dic 2018

Continuing the analysis and projection of the channel lines, you can see that there can be multiple ways to draw the channels. In this channel drawing, I assumed that the price spike drop was a panic price drop and therefore used the more steady price bottoms that reacted multiple times on the top and bottom of the channel that I drew. It creates more of a line of best fit. The most recent bounce happened at the test of two channel line crosses as well as a significant bottom from the end of June 2017. Although for me this is a temporary bounce since the downtrend still exists, I could see the potential for a bullish reaction to this significant level especially after the method that it rejected the 240 level. If not then look out.