With a close below the 200 day moving average, the big question is, does this continue?
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Here we examine the 4hr chart.
While things have seemed bad for Spy lately, if we break down the broader term price action, we see an ascending channel. This channel began on a gap up after a corona panic induced sell off. Actions has been on the upper end of the midline throughout the majority of the trend. With steam slowing down, this one could finish of the lower end of the midline if the upwards trend reclaims this week. Spy needs to bounce upwards off the 200 day moving average with a close above said average to show any signs of hope. Heavy support around the 320 area, bulls need to reclaim this area and turn things around Lets focus on a current time frame with projections into the Presidential election. Do investors see 1 more opportunity left into October, or do we start to break down out of the channel and into a new trend? Spy is extremely oversold on many intraday time frames, nearing oversold on the daily. All indicators included, in my opinion, this one is very much up in the air.
With so much uncertainty in the air do investors pull the rug and take the cash to their portfolios and let the bears run loose, or do the bulls reclaim the price action back into a bullish movement? This could be the week we find out
Comment
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Post a comment to let me know what you think the market will do!
I typically chart daily charts, but I can see the slight confusion in wording
Valley_Vista_Capital
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SPY's 200 day MA is around 309. We're nowhere close to it. You're looking at the 4hr chart. That line is showing (4h x 200).
king806
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@HamelEquity that's stated in the beginning of the post
Valley_Vista_Capital
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@king806, "With a close below the 200 day moving average, the big question is, does this continue?" We did not close below the 200 day MA. 322 is not the 200 day MA.
king806
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like I said if you're confused about the small miswording I apologize. it's clearly stated directly under that this is a 4hr chart. no one should be thinking days when looking at this. apologize I confused you
Valley_Vista_Capital
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@king806, Not confused at all. Just want to make sure you understand the difference between a 200 EMA at the 4hr level and the actual 200 day EMA. This post confuses the two. If SPY were to actually drop below the 200 DAY MA, it would be much more meaningful. The 200 EMA on the 4hr level doesn't mean anything.
king806
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@HamelEquity 240 is directly next to the title, no reason you should be thinking days here like I've said time and time again. I clearly understand the difference, reference my charts. I see the confusion my narration causes. apologies.