SPY (S5COND): Descending channel, consumer discretionary
Hi all,
For this one, no price target. Just an evaluation of the status of the market.
Consumer Discretionary (S5COND) chart shows the industries that have a tendency to trend lower in a bearish market.
It encompasses industries that produce durable goods like cars but also leisure items such as Netflix and others.
The fact that the chart has been (and is still) trending down demonstrates that money is not spent as much as it used to on leisure items. The general population is making better use of their finance such as mortgage and debt repayment. With high interest rates and inflation, it all makes sense.
The current trend is quite clear with no end in sight. The market structure is bearish.
In order for this to change, the price action will have to move above the top trend line of the channel. This is not going to happen short term but keeping an eye on this chart may help you see when the market will turn back unto a bullish one.
Stay humble, Have fun, Make money.
For this one, no price target. Just an evaluation of the status of the market.
Consumer Discretionary (S5COND) chart shows the industries that have a tendency to trend lower in a bearish market.
It encompasses industries that produce durable goods like cars but also leisure items such as Netflix and others.
The fact that the chart has been (and is still) trending down demonstrates that money is not spent as much as it used to on leisure items. The general population is making better use of their finance such as mortgage and debt repayment. With high interest rates and inflation, it all makes sense.
The current trend is quite clear with no end in sight. The market structure is bearish.
In order for this to change, the price action will have to move above the top trend line of the channel. This is not going to happen short term but keeping an eye on this chart may help you see when the market will turn back unto a bullish one.
Stay humble, Have fun, Make money.
