SPY: Long for the next 3 weeks After some charting fun I made a few observations ~During the past dividends, there has been a big pullback which coincided with the previous 5% drop and this 6% drop. This could be a bearish indicator for future SPY contracts to keep in mind. Dividends = puts ~The previous resistance became the long term support ever since April. This, if SPY ever does break this resistance line without coming back, there are two gaps to fill which would be great Price targets (414.50-416) and (401.30-402.70) ~Using fractal recurrence, we can see that we may see a rise to probably around 449 before we see our next major pullback. The last 5% drop that followed a double bottom that we are seeing now followed this pattern, and seeing as to how this is a very similar fractal...Lord have mercy. ~Also keep in mind that the RSI is overbought rn and has also started curling up. Every time it has done this it has gone to overbought.
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In my last point, I accidentally used the wrong term.... "Also keep in mind that the RSI is overbought rn and has also started curling up. Every time it has done this it has gone to overbought."
I meant that the RSI is oversold rn and is usually followed by going overbought
RSI can result in "Overbought" and "Oversold" conditions. Most of the times you've used the word "Overbought" I think you mean "Oversold"
CheckMatted
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@JebusLives, ahahha yes. I tend to do that. FOr some reasons my brain uses those words interchangably and yet I mean what you said LMAO. Thanks for bringing it up
samitrading
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Nice work buddy, keep up the good work.
TheLonelySock
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also, that's technically not a "double bottom." It's following the trend if thats what you mean, for now.
CheckMatted
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@TheLonelySock Well it is not a double bottom if u look at it from that long if a view. I am assuming u mean it is not a double bottom in the time frame I provided. in which case ur rjght. It is however, definitely a double bottom when it is isolated during the a zoom in. There were two of these occurrences as can be seen by the arrows