So I took the log scale of SPY and copied the pattern of our august correction and placed it on top of April, I then added the Ichimoku cloud and it looks like the pattern would be bouncing at support and resistance and bottom at a relatively reasonable point around 470.
I expected a bounce at some point because we aren't going to go straight down, so I wanted to get an idea of what it would look like if we replicated the previous drop.
Based on today's price action I do not feel that we will be bouncing quite yet, I think we have room to fall perhaps to 495 before a bounce.
I would have expected a bit more upside today if this was really a local bottom, it seems like the market was a bit too flat after a price discount. I think there is still some eagerness to sell.
Just something to look at going into the coming months. :)
I expected a bounce at some point because we aren't going to go straight down, so I wanted to get an idea of what it would look like if we replicated the previous drop.
Based on today's price action I do not feel that we will be bouncing quite yet, I think we have room to fall perhaps to 495 before a bounce.
I would have expected a bit more upside today if this was really a local bottom, it seems like the market was a bit too flat after a price discount. I think there is still some eagerness to sell.
Just something to look at going into the coming months. :)