SPY in giant SHS pattern with a target well below the last low
SPY is a symmetrical triangle after the leg down which is bearish. It found resistance yesterday and drop right away. Volume is weak on both sides so it is still neutral.
On the other side, it is forming a huge Head and shoulder bearish reversal pater which if triggered will cause a massive drop in SPY with targets well below 2022 lows. However, if SPY somehow manages to consolidate on this level for a week or two, on smaller volume, and with good financial reports starting to break out of a symmetrical triangle there could be a pump in SPY towards the August 2022 high. However, I found it hard to happen.
Bank reports which start next week will move the market for sure.
I can say we have entered the worse area for bulls. I assess from now on we are in recession mode, meaning good news will be bad for stocks as it is a sign FED has to work more, and bad news will be bad for the stock as it will prove we are heading into a deep recession!
On the other side, it is forming a huge Head and shoulder bearish reversal pater which if triggered will cause a massive drop in SPY with targets well below 2022 lows. However, if SPY somehow manages to consolidate on this level for a week or two, on smaller volume, and with good financial reports starting to break out of a symmetrical triangle there could be a pump in SPY towards the August 2022 high. However, I found it hard to happen.
Bank reports which start next week will move the market for sure.
I can say we have entered the worse area for bulls. I assess from now on we are in recession mode, meaning good news will be bad for stocks as it is a sign FED has to work more, and bad news will be bad for the stock as it will prove we are heading into a deep recession!
Consistency is the key of success....