This SPDR S&P 500 ETF Trendline Break Could Spell Massive Downsi
To start the trading day, the market futures were up a fair amount as the second quarter GDP print came in higher than expected, a 4% increase. Everyone seemed to be rejoicing and loving this key economic data point. However, since that release the market has started to fall.
Why is this happening you ask?
Well, with the data coming in better than expected, and the economy on seemingly improved footing, the FED (which concludes its two day meeting today) will continue to taper and possibly raise rates sooner than the markets would like. So while you will hear a ton of reason why the market will bounce or fall today, I will simply be looking for a break of this very important trend line noted in the following chart of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY). If this line does break, then that will trigger a technical chart formation called a "Head and Shoulders" pattern, and that line is considered the neckline. This pattern is bearish and telling us there is more downside to come.
For live market insight and alerts exactly when we enter and exit positions... Come step inside the Elite Round Table and enter profitable trades live with the proven Pro's. You can also join our FREE market moving email list to get free updates ONLY when important action is happening. Or get the live trades we enter right now here. We look forward to having you join us as we navigate the markets and make money!
Parm Mann
Elite Round Table
Follow me on twitter: @ParmMannTrader
Join the Elite Round Table on Facebook
Why is this happening you ask?
Well, with the data coming in better than expected, and the economy on seemingly improved footing, the FED (which concludes its two day meeting today) will continue to taper and possibly raise rates sooner than the markets would like. So while you will hear a ton of reason why the market will bounce or fall today, I will simply be looking for a break of this very important trend line noted in the following chart of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY). If this line does break, then that will trigger a technical chart formation called a "Head and Shoulders" pattern, and that line is considered the neckline. This pattern is bearish and telling us there is more downside to come.
For live market insight and alerts exactly when we enter and exit positions... Come step inside the Elite Round Table and enter profitable trades live with the proven Pro's. You can also join our FREE market moving email list to get free updates ONLY when important action is happening. Or get the live trades we enter right now here. We look forward to having you join us as we navigate the markets and make money!
Parm Mann
Elite Round Table
Follow me on twitter: @ParmMannTrader
Join the Elite Round Table on Facebook