SPY after a major drop found support in the block area of support. Bounce was strong with a nice volume. And now SPY did find resistance at a major level which according to my analysis won't break so easily or better say won't break at all. There is an old and powerful trendline from 2022 and also there is BigRed or 200 days MA. That area of resistance will be too strong for now. Also, the bounce did find resistance at 0.5 fib retracement which is just the perfect area for forming a bear pullback with a target around the last lows.
Volume indicates there will be huge moves and likely panic in the market.
Price is now below all major MA which is bearish.
RSI bounces from the mid-oversold area and is in neutral ready for the continuation of direction.
MACD is dropping and is bearish.
Overall: SPY is looking very weak. There is an 80% chance that the market will continue to drop from these levels. After Biden and FED and others announced the market calm down, but are bank runs over? Do people believe in FED and their help or are they in lines and taking out their money?
Yesterday CPI showed inflation is an issue and a real issue, especially in shelters. Today is PPI.
When I talk with myself (lol) or better say think about it, I don't know what would be worse news for the market from the FOMC meeting next week. Would it be worse if FED said we are going to increase rates no matter bank fails? Or would be worse if FED said the system is broken, we are going into recession and we need to pause or cut interest rates?
So my dear bulls and bears followers, please leave comments on what is a better option, as really I don't know.
Volume indicates there will be huge moves and likely panic in the market.
Price is now below all major MA which is bearish.
RSI bounces from the mid-oversold area and is in neutral ready for the continuation of direction.
MACD is dropping and is bearish.
Overall: SPY is looking very weak. There is an 80% chance that the market will continue to drop from these levels. After Biden and FED and others announced the market calm down, but are bank runs over? Do people believe in FED and their help or are they in lines and taking out their money?
Yesterday CPI showed inflation is an issue and a real issue, especially in shelters. Today is PPI.
When I talk with myself (lol) or better say think about it, I don't know what would be worse news for the market from the FOMC meeting next week. Would it be worse if FED said we are going to increase rates no matter bank fails? Or would be worse if FED said the system is broken, we are going into recession and we need to pause or cut interest rates?
So my dear bulls and bears followers, please leave comments on what is a better option, as really I don't know.
Consistency is the key of success....
It wasn't a bear pullback it is almost certainly a bear flag. The end state will be the same but just to make an update.
Chart is in linechart because to much folks it is easier to see what I am talking about