This is weekly SPY chart with Stochastics indicator in the bottom half. Since April 2020, the tape and the stochastics have been supported by the drawn trend line. If this trendline breaks this time around, the bull market is over. Since the time is now, it is critical to watch this line over the coming week and the next.
We are in severely oversold category and a break of the trendline will send the market plummeting. If the stochastic finds support here, we have another 3-4 months (caveat emptor) before this rally finds a natural way to pull back.
We are in severely oversold category and a break of the trendline will send the market plummeting. If the stochastic finds support here, we have another 3-4 months (caveat emptor) before this rally finds a natural way to pull back.
Comment:
A correction - we are in a severely overbought situation, not oversold!