Hedge_Of_The_World

Island Top Reversal?

Short
AMEX:SPY   SPDR S&P 500 ETF TRUST
We're looking at SPY on the hourly time frame, and we appear to be in an island top reversal. Let's see how the close shapes up and if the bears have been saving all the fire power for today...
✅ Live market commentary, technical analysis, and trading ideas from 9:30AM - 4:00PM, everyday
✅ Join now @ http://www.hedgeoftheworld.com

Comments

I think the key indicator to watch is the 10 year treasury...that seems to be the only thing moving SPX and Nasdaq downwards. Right now the 10 year treasury is coming to a very strong support area and is very oversold but until there is a clear bottom & reversal I think both SPX and Nasdaq will slowly creep up or move sideways or correct a little. Regarding the overall market, the key indicator is the DXY and that is showing bullish signs but there is a lot of resistance for it to break through...maybe a short squeeze on the dollar next week to rattle things up? It just closed the weekly above a 4 week consolidation level with a huge bullish candle following a double doji...if a short squeeze were to happen it would be now when everyone/everything bearish on the dollar. Just look at the short squeeze that's happening in the bond market. I just don't see a big reversal happening until there is less liquidity but it will happen at some point and at that point the US markets will get hammered...maybe we are at the start of a top but I think we will go through a long rangebound period before we start hammering downwards. Just my two cents.
+1 Reply
@happyCloud1537 makes sense, we’ve been essentially drifting sideways on the Russell since Feb, and for over 2 months on the S&P. Vix is perpetually being hammered lower, but Friday is quad witch, and somewhere in the realm of $2 Trillion in contracts expire. Should be a pretty interesting meeting for the Fed tomorrow also. I’m expecting fireworks.
Reply
When does it start?
+1 Reply
@strawserpbiggskc61 big short squeeze today negated the hourly pattern. We’ll see how things shape up this week. It’s a busy one.
Reply
I can def understand this island 🏝 chart pattern
+1 Reply
@zzzikaikazzz, We'll see if the bears show up at the 99th hour as usual.
Reply
I do live in Hawaii 🌺
+1 Reply
Reply
:inverted_rocket:
+1 Reply
Hedge_Of_The_World DarkPoolTrading
@DarkPoolTrading, Too short a time frame I think, the previous wave looked very similar but this time we got a notable gap up. Let's see how the close shapes up. I'm thinking it's going to be ugly.
+1 Reply