The S&P 500 is still "The Last Man Standing", but I don't think for very much longer. The SH, DOG, and PSQ are (please review yesterdays charts that I submitted). This means the markets should sell-off.
As for the SPY chart (above, proxy for the S&P 500 ), the I see is a pattern.
The BAT is a reversal pattern that allows you to enter the market at extreme highs or lows.
It is similar to the and patterns. To trade the , enter the market with a short trade at point D of the pattern – the price should reverse direction here. I have highlighted with two red arrows the retracement targets to monitor.
For an aggressive profit target, place your take profit order at point A (February 2016 bottom). FOR THIS TO HAPPEN - The 200 day moving average at 2018 must be breached to the downside. For a more conservative profit target, place your take profit order at points Fib Target 1 or Fib Target 2.
The S&P 500 has held up for a long time. With interest rates so low it's the only logical place that money managers tend to "play".
But I think the smart money is setting you up for a fall. The phase energy is falling FAST (top indicator by long red arrow), and the jaws are reversing to the downside (red arrow, far upper right, at 210). It is tough to go short in this market. But stick to your guns - this market IS NOT CHEAP BY ANY MEANS.
I suggest that you remember these words: “Acting on your convictions is the ultimate test of your faith in your convictions.”
This is the end of part 1. Part 2 is the chart of QQQ which just completed a similar as I am showing you here.
Only QQQ is falling as the suggested. I believe the S&P 500 will follow in Powershare QQQ footsteps.
I hope this has been helpful, entertaining, and informative. May all of your trades go well. Don.