SPY daily starting to look a lot like it did earlier in the year when we had a rising wedge break bear and form our weekly equilibrium. Now that the weekly broke bullish, I am starting to consider the potential for a monthly equilibrium. While 278 looks visually appealing for a monthly eq, I am still considering the potential that we are nearing the top given the failure to definitively break out of the wedge tops. I will be looking for a higher low to form on the monthly, perhaps lining up with back tests of weekly downtrend lines that were broken indicated by the pink lines (which tracked weekly up and downtrends).
The wedge or channel we are trading in currently is indicated by the black lines.
The wedge or channel we are trading in currently is indicated by the black lines.