On the weekly chart, SPY has formed an inverted head and shoulders in the past
9 months Importantly price has now passed above the POC lines of the long term
and intermediate term volume profiles. The inverted head and shoulders pattern
is classical for a bullish bias for price action. Price has been cconsolidated about
the central VWAP of the anchored VWAP bands locked onto the covid lows.
SPY should now make an attempt to rise toward the 2022 high of 480.
The RSI indicator confirms the long term trend with increasing strength.
In consideration of this I will take a call option trade of the strike of
$415 to
425
with 90-120 DTE. Overall, the SPY weekly chart, suggests
a general market recovery is increasingly probable. Those keeping their powder
dry and staying ready with cash will be rewarded once the market slows down for
the summer and gets more active in the fall months/
9 months Importantly price has now passed above the POC lines of the long term
and intermediate term volume profiles. The inverted head and shoulders pattern
is classical for a bullish bias for price action. Price has been cconsolidated about
the central VWAP of the anchored VWAP bands locked onto the covid lows.
SPY should now make an attempt to rise toward the 2022 high of 480.
The RSI indicator confirms the long term trend with increasing strength.
In consideration of this I will take a call option trade of the strike of
$415 to
425
with 90-120 DTE. Overall, the SPY weekly chart, suggests a general market recovery is increasingly probable. Those keeping their powder
dry and staying ready with cash will be rewarded once the market slows down for
the summer and gets more active in the fall months/