Got a lot going on here in this chart. So bear with me me. I've decided to keep all the trendlines and support lines drawn here because they all have continued to be respected in some form of support/resistance which can tell us a lot. Nothing is more important than the green and pink trendline. Green being the megaphone pattern created over the past year and a half now. Notice how the Qs failed to get back above it? Not only failing to get back above, but even worse, failing to make new highs or test them like the SPY did.
The pink line has been major support dating back to 2016. Q's again are below it. Again big bearish sign.
Red line is support since Dec last year. Good news here, the Q's haven't broken down below it like the SPY has. Blue line again, not as well respected as our other trendlines, but again has been resistance and a big pivot point dating back to 2018. Back above it though, which is a bullish sign.
Realizing that investors have reasons to be bullish and bearish here is important to understanding you can't be perma bear or perma bull at this point. If a breakdown below the red and blue trendlines begin to amount, then all of a sudden, every part of this chart looks broken and an impulsive sell off could occur. A break above the green trendline and an impulsive move higher could happen.
Short the green trendline
Long the red trendline.
Stop/Loss being a break of either one of course....
The pink line has been major support dating back to 2016. Q's again are below it. Again big bearish sign.
Red line is support since Dec last year. Good news here, the Q's haven't broken down below it like the SPY has. Blue line again, not as well respected as our other trendlines, but again has been resistance and a big pivot point dating back to 2018. Back above it though, which is a bullish sign.
Realizing that investors have reasons to be bullish and bearish here is important to understanding you can't be perma bear or perma bull at this point. If a breakdown below the red and blue trendlines begin to amount, then all of a sudden, every part of this chart looks broken and an impulsive sell off could occur. A break above the green trendline and an impulsive move higher could happen.
Short the green trendline
Long the red trendline.
Stop/Loss being a break of either one of course....
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