SPY 200 Point Close (8%)|200 Weekly MA|RSI approaching oversold
Evening Traders!
Today’s analysis will be on SPY, a 200 point close on the weekly time frame, saving SPY from having one of the worst weeks in history as it respects the longer term trend line.
Technical points to consider,
- Price above key technical 200 Week MA
- Long term trend line respected
- Structural resistance as probable lower high region
- Stochastics projected down
- RSI approaching oversold
- Noticeable bear volume nodes
SPY is currently sitting above the 200 Week Moving Average, a level that must hold as a weekly candle close will increase the probability of taking out lows. Price respected the longer term trend line with a precise wick leading to a 200 point close.
Structural resistance is a key level to break, if bull volume does not follow through with the bounce, SPY is likely to put in a lower high.
The Stochastics is currently projected down with stored momentum, it can stay trading in the lower regions for an extended period of time.
RSI is approaching oversold conditions; historically SPY has a relief rally, which can be plausible on the open. There are noticeable bear volume nodes indicating extreme sell pressure putting more emphasis on an oversold bounce.
Overall, in my opinion, fundamentally and speculatively this bounce could be due to big balance sheets ramping up the markets to avoid one of the worst weeks in history. It could also be due to large short covering to avoid holding
over the weekend.
Technically, if price does not break and close above structural resistance within the next couple weeks and months, this will increase the likelihood of lower highs, thus testing lower levels.
What are your thoughts?
Please leave a like and comment,
And remember,
“You become fearful the moment you identify with fear. But once you begin seeing it as an impersonal changing phenomenon, you become free.”
― Yvan Byeajee,
Today’s analysis will be on SPY, a 200 point close on the weekly time frame, saving SPY from having one of the worst weeks in history as it respects the longer term trend line.
Technical points to consider,
- Price above key technical 200 Week MA
- Long term trend line respected
- Structural resistance as probable lower high region
- Stochastics projected down
- RSI approaching oversold
- Noticeable bear volume nodes
SPY is currently sitting above the 200 Week Moving Average, a level that must hold as a weekly candle close will increase the probability of taking out lows. Price respected the longer term trend line with a precise wick leading to a 200 point close.
Structural resistance is a key level to break, if bull volume does not follow through with the bounce, SPY is likely to put in a lower high.
The Stochastics is currently projected down with stored momentum, it can stay trading in the lower regions for an extended period of time.
RSI is approaching oversold conditions; historically SPY has a relief rally, which can be plausible on the open. There are noticeable bear volume nodes indicating extreme sell pressure putting more emphasis on an oversold bounce.
Overall, in my opinion, fundamentally and speculatively this bounce could be due to big balance sheets ramping up the markets to avoid one of the worst weeks in history. It could also be due to large short covering to avoid holding
over the weekend.
Technically, if price does not break and close above structural resistance within the next couple weeks and months, this will increase the likelihood of lower highs, thus testing lower levels.
What are your thoughts?
Please leave a like and comment,
And remember,
“You become fearful the moment you identify with fear. But once you begin seeing it as an impersonal changing phenomenon, you become free.”
― Yvan Byeajee,