TheTravel1ngTrader

S&P 500 ($SPY, SPX500) going down this week!

Short
AMEX:SPY   SPDR S&P 500 ETF TRUST
Even though it's typical to see bear rallies in bear markets since nothing shoots down in a straight line forever, there are technical reasons why this week will likely be red for the SPX500 . First let's talk about the declining volume while the price is violently rallying. This divergence between volume and price cannot be ignored.

We also have the hidden bearish divergence between the price, RSI , and Stoch RSI . Remember that the hidden bearish divergence indicates underlying weakness and it's typically formed during retracements in a downtrend. These are the rallies you'll want to sell into (and short to ride the next wave down).

There is also the death cross forming between the 50 MA and 200 MA.

Furthermore, the 0.5 Fib level is sitting right there at the top of the latest daily candle.

Lastly I'll add that if we get a gap down candle on Monday Apr 13 this will represent an abandoned baby candlestick pattern ( bearish ).

Will likely be buying the SPXS leveraged inverse ETF during pre-market. I also have some bear credit spread options on the $SPY that expire this week.

Stay safe out there traders, peace...✌🏼☮️

Comments

Solid. Also happened to bounce right off of the top of the 2018 sucker rally highs on Thursday.
+2 Reply
bsimo0001 yosip1115
@yosip1115 also keen to hear the sentiment!
Reply
how are you feeling on this after today? still more down?
Reply
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