SPY Technicals
Few things to identify:
#1 V/Spike pattern --> typically a reversal but arguments could be had that this was on the both top and bottom ie Jan/Feb was a blowoff and a correction/reaction should have happened anyways like in Jan 2018. On the bottom, I'm comparing it to 2018. It's the most recent example of the pattern and was a wonderful trade for anyone who acted on it as 2018 was such a profitable year. (Though I do not necessarily agree with motivation behind QE)
#2 Fib levels, recovered up to 38.2% today from 340 to 218 (ish), wouldn't be surprised if we react down to 23.6% (~245) over the next two days but unless something else is released about Covid, energy, etc, I wouldn't expect a dip beneath 245
#3 Volume profile: There's a lot of resistance above price so in an ideal world, the stimulus package would provide the momentum to penetrate it but there is still plenty of uncertainty in the world so don't be surprised by sideways trading
#4 MACD: it has crossed up so from a technical purist standpoint we are safe at least for a little bit and this should ideally represent a bullish indicator to penetrate the 38.2% level/heavy volume prices
Conclusion: Next couple days = bearish, next week = flat/break above 38.2% level
#1 V/Spike pattern --> typically a reversal but arguments could be had that this was on the both top and bottom ie Jan/Feb was a blowoff and a correction/reaction should have happened anyways like in Jan 2018. On the bottom, I'm comparing it to 2018. It's the most recent example of the pattern and was a wonderful trade for anyone who acted on it as 2018 was such a profitable year. (Though I do not necessarily agree with motivation behind QE)
#2 Fib levels, recovered up to 38.2% today from 340 to 218 (ish), wouldn't be surprised if we react down to 23.6% (~245) over the next two days but unless something else is released about Covid, energy, etc, I wouldn't expect a dip beneath 245
#3 Volume profile: There's a lot of resistance above price so in an ideal world, the stimulus package would provide the momentum to penetrate it but there is still plenty of uncertainty in the world so don't be surprised by sideways trading
#4 MACD: it has crossed up so from a technical purist standpoint we are safe at least for a little bit and this should ideally represent a bullish indicator to penetrate the 38.2% level/heavy volume prices
Conclusion: Next couple days = bearish, next week = flat/break above 38.2% level
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.