A bit of a summary of the first part of this chapter.
The SPY has been trending upwards since the beginning of time.
I believe the time has come for this bubble to burst mainly because of Elliot Wave Theory that coincides with the catastrophic macro economic environment.
Looks bearish on macro scale and daily charts presenting bearish divergences.
SPY could still trend upwards and go to the resistances stated above and accumulate more bearish divergences.
My bias will change if weekly chart presents bullish divergence on the Elliot Wave Indicator (higher low in price with accumulation).
Today
My bias HASN'T changed since there hasn't been a higher low in price with an accummulation on the EWI.
The price action of the last couple of months has been side ways action on the upper part of the range, which to me sounds much like a DISTRIBUTION.
This distribution coincides with the corrective part of the Elliot Wave it is currently at.
Today, SPY has lost momentum on the weekly chart, which means on the lower timeframes, price will try to be pushed upwards with more bearish divergences but it won't be sustainable and the unstoppable scenario of the Incomming Capitulation will be here.
Weekly 200MA trending upwards at $372
Fibonacci extension 0.786 level at 314
Fibonacci extension 1 level at $286
Fibonacci extensions 1.382-1.618 at $204-$244 (big support and bottom of bear market)
The SPY has been trending upwards since the beginning of time.
I believe the time has come for this bubble to burst mainly because of Elliot Wave Theory that coincides with the catastrophic macro economic environment.
Looks bearish on macro scale and daily charts presenting bearish divergences.
SPY could still trend upwards and go to the resistances stated above and accumulate more bearish divergences.
My bias will change if weekly chart presents bullish divergence on the Elliot Wave Indicator (higher low in price with accumulation).
Today
My bias HASN'T changed since there hasn't been a higher low in price with an accummulation on the EWI.
The price action of the last couple of months has been side ways action on the upper part of the range, which to me sounds much like a DISTRIBUTION.
This distribution coincides with the corrective part of the Elliot Wave it is currently at.
Today, SPY has lost momentum on the weekly chart, which means on the lower timeframes, price will try to be pushed upwards with more bearish divergences but it won't be sustainable and the unstoppable scenario of the Incomming Capitulation will be here.
Weekly 200MA trending upwards at $372
Fibonacci extension 0.786 level at 314
Fibonacci extension 1 level at $286
Fibonacci extensions 1.382-1.618 at $204-$244 (big support and bottom of bear market)