SPY after an extended run-up yesterday made a bearish reversal pattern hanging man and today formed a bearish reversal pattern shooting star. Last two days, the bullish day was not confirmed with the volume therefore can't be taken into consideration as a legit and healthy bull run.
SPY is above all major MA and that is bullish for sure.
Volume is weaker on two strong up days which is more bearish than bullish.
RSI is at 64 and is overbought.
MACD has strong negative divergences which is an indication of correction time.
Overall: SPY had a nice and strong move up but it seems it's time for correction. Now it is a question is it only a bull pull back or volume will increase with falling in price? There is some chance for SPY to visit 410 where is resistance but we gave it small chance. The drop should find some support for the trend line.
Because of all mentioned, Consistent trades give a sell signal on these levels!
If I must bet I would say soon golden cross will be all over CNBC and other news but I am not convinced it will help the market too much at this moment.
SPY is above all major MA and that is bullish for sure.
Volume is weaker on two strong up days which is more bearish than bullish.
RSI is at 64 and is overbought.
MACD has strong negative divergences which is an indication of correction time.
Overall: SPY had a nice and strong move up but it seems it's time for correction. Now it is a question is it only a bull pull back or volume will increase with falling in price? There is some chance for SPY to visit 410 where is resistance but we gave it small chance. The drop should find some support for the trend line.
Because of all mentioned, Consistent trades give a sell signal on these levels!
If I must bet I would say soon golden cross will be all over CNBC and other news but I am not convinced it will help the market too much at this moment.
Consistency is the key of success....