SPY Short Squeeze based on RSI/post Quadruple Witching
markets.businessinsi...anuary-rally-2021-12
Looking at the chart you will notice SPY has been trading flat for around 50 days. SPY has never done this before (rare). Very heavy price consolidation = breakout soon
During an uptrend, the RSI tends to stay above 30 and should frequently hit 70. During a downtrend, it is rare to see the RSI exceed 70, and the indicator frequently hits 30 or under.
Friday at close: RSI above 30 indicating a bullish trend is about to start despite SPY price hitting $459.
Big picture: Higher lows and RSI staying above 30, lower highs for RSI, Bullish AF.
Prediction end of January: $515-$530
Photos (Reddit isn't working when I upload photos)
ibb.co/VQXqcvz
ibb.co/pWqQCGJ
ibb.co/d00kwZk
Think I am wrong? Look at 12/1 - 12/3. The RSI fell below 30 indicating a bearish trend then on 12/3 the RSI was above 30 indicating a bullish trend was about to start and the following day SPY gapped up hard.
In my opinion, the Friday sell-off was because England raised their interest rates which makes NO logical sense when their country is a hotspot for the new variant. The rest of Europe didn’t and won’t raise interest rates in 2022 because of the variant.
The CDC states this is going to get terrible in the U.S and the media says it’s mild when it’s not. You need to look at the hospitalization data closer and you will realize it’s significantly worse than Delta. Read below, “CDC issues grim forecast warning that weekly COVID cases will jump by 55% to 1.3 MILLION by Christmas Day and that deaths will surge by 73% to 15,600 a week as Omicron becomes dominant strain.”
Then look at the New York City data, NY Reports Highest Single-Day Case Total of Pandemic. This variant is extremely contagious, the bull run is just starting. Our gov won’t let the economy crash causing permanent damage to the economy when the pandemic is starting again.
Looking at the chart you will notice SPY has been trading flat for around 50 days. SPY has never done this before (rare). Very heavy price consolidation = breakout soon
During an uptrend, the RSI tends to stay above 30 and should frequently hit 70. During a downtrend, it is rare to see the RSI exceed 70, and the indicator frequently hits 30 or under.
Friday at close: RSI above 30 indicating a bullish trend is about to start despite SPY price hitting $459.
Big picture: Higher lows and RSI staying above 30, lower highs for RSI, Bullish AF.
Prediction end of January: $515-$530
Photos (Reddit isn't working when I upload photos)
ibb.co/VQXqcvz
ibb.co/pWqQCGJ
ibb.co/d00kwZk
Think I am wrong? Look at 12/1 - 12/3. The RSI fell below 30 indicating a bearish trend then on 12/3 the RSI was above 30 indicating a bullish trend was about to start and the following day SPY gapped up hard.
In my opinion, the Friday sell-off was because England raised their interest rates which makes NO logical sense when their country is a hotspot for the new variant. The rest of Europe didn’t and won’t raise interest rates in 2022 because of the variant.
The CDC states this is going to get terrible in the U.S and the media says it’s mild when it’s not. You need to look at the hospitalization data closer and you will realize it’s significantly worse than Delta. Read below, “CDC issues grim forecast warning that weekly COVID cases will jump by 55% to 1.3 MILLION by Christmas Day and that deaths will surge by 73% to 15,600 a week as Omicron becomes dominant strain.”
Then look at the New York City data, NY Reports Highest Single-Day Case Total of Pandemic. This variant is extremely contagious, the bull run is just starting. Our gov won’t let the economy crash causing permanent damage to the economy when the pandemic is starting again.