SPY heading into a key level on long time frame
SPY on the weekly chart is obviously in a long downtrend.
Using the up trend from the Covid Crash to all-time highs the first week of January
and then a retracement, price is presently between the 0.382 and 0.5 Fibonacci levels
for the past two weeks with big range downward momentum candles seen.
The Mass Index is in mid-range while on the MACD indicator the blue MACD
is crossing down on the red signal line and both are below the histogram.
On this long-range analysis , SPY is in an established downtrend without anything
to suggest a reversal. However, anything can happen to improve the macro outlook
so I am watching for a reversal if/when SPY approaches the Fib 0.5 / 349.8.
I am expecting however to see continuation down targetting at first the lower Fib level.
s
Using the up trend from the Covid Crash to all-time highs the first week of January
and then a retracement, price is presently between the 0.382 and 0.5 Fibonacci levels
for the past two weeks with big range downward momentum candles seen.
The Mass Index is in mid-range while on the MACD indicator the blue MACD
is crossing down on the red signal line and both are below the histogram.
On this long-range analysis , SPY is in an established downtrend without anything
to suggest a reversal. However, anything can happen to improve the macro outlook
so I am watching for a reversal if/when SPY approaches the Fib 0.5 / 349.8.
I am expecting however to see continuation down targetting at first the lower Fib level.
s