SPY daily - at major resistance, be or not
SPY daily is at major resistance both on daily and weekly chart. Price is at BigRed (200 days MA) and at falling upper channel trend line which two lines will likely act as strong resistance. SPY need same great news from earnings to forget all issue about inflation and to start moving up in new bull market after year of correction.
SPY is also in a bearish SHS formation and in the event of a neck line break it would be very bearish .
In the last five trading days, the volume was lower than the 20-day average, which indicates that the growth is mostly short covering and not an indication of a new bull market.
Price is between all major MA which indicate very strong move in next few trading secession.
The RSI has crossed 60 and has entered medium overbought territory, which could be bearish .
MACD is ticking up while MACD line and signal line are going up which is bullish and indicates bullish momentum, however zero line could act as resistance.
Overall: considering how SPY is in the area of strong resistance, in the next few trading days it has to make a strong breakout on high volume to be able to talk about a new bull market. This will be hampered by inflation news, so far bad financial reports and ceiling top information.
In the event that SPY fails to break through the mentioned resistance, a fall to the neck line and continuation of the bear market is likely.
SPY is also in a bearish SHS formation and in the event of a neck line break it would be very bearish .
In the last five trading days, the volume was lower than the 20-day average, which indicates that the growth is mostly short covering and not an indication of a new bull market.
Price is between all major MA which indicate very strong move in next few trading secession.
The RSI has crossed 60 and has entered medium overbought territory, which could be bearish .
MACD is ticking up while MACD line and signal line are going up which is bullish and indicates bullish momentum, however zero line could act as resistance.
Overall: considering how SPY is in the area of strong resistance, in the next few trading days it has to make a strong breakout on high volume to be able to talk about a new bull market. This will be hampered by inflation news, so far bad financial reports and ceiling top information.
In the event that SPY fails to break through the mentioned resistance, a fall to the neck line and continuation of the bear market is likely.
Comment:
Sure enough, SPY got rejected hard from resistance lines on bigger volume which is bearish. It need now to consolidate without any further fall otherwise will likely fall first to blue trend line which should act as support and than likely down.
Consistency is the key of success....
