SPY is looking to tag the top trend line of a long-term megaphone pattern that has been developing since January of 2018. It almost coincides with the 78.6% fib retracement from the February highs to the March lows. Despite the constant push up in the markets, I do still believe that we are in a bear market, and that the gains made in the market since the March lows are nothing more than a bear market rally.
I do expect the market to capitulate again, revisiting and then eventually falling much lower than, the March lows.
I been reading about the next leg down coming this week for six weeks. The FED said " whatever it takes" and they mean it. The market believes Jay Powell.
dereckcoatney
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@jdgpro, Well, it all depends on one's investing time frame. This rally is long, to be sure, but the first bear market rallies in new bear markets often take a couple months or even longer to resolve. If we're not there now, we're super close, I believe.
JVtrades08
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@dereckcoatney, any thoughts on possible catalysts for the correction to the downside?
uiwnq22776
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all rational is gone in this market. what is know is no longer so. carts will not help.
wallstreetsharks
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very nice... looking to establish some shorts alligned with my setup here too, gonna wait patiently and pounce...
BradButler
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Good job.
kennethNipperCRPC
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Thanks for your comprehensive analysis.
Miketinkle
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Well done.. Keep posting
Exotime
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i've been watching this line as well
adamans
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Agreed, we will see this all come back down to 280.