SPY Channel

Made this channel a couple of weeks ago and it looks like SPY is staying in this upward trend. I believe if this channel breaks we may see some kind of drop. I will initiate a short if we see multiple days break from this channel. Let me know your thoughts!

Comment:

Spy stayed strong into the close and looks like we may see it continue into tomorrow and possibly the end of the week. I think we might see some resistance around the 305 mark and might trigger a reversal there. But I would not be surprised if we continue all the way up to the 320 area before we start to see a major pullback. RSI is close to approaching a top as well, but in a market environment like this, you can't really rely on RSI.

We have to watch the headlines to see exactly when we might get a clue to see where this market may go into the summer. China tensions, virus second wave, etc. Even if we do get a pullback we are most likely just going to form an equilibrium into the fall where we might see another major market correction. Also, keep an eye on QQQ as we near all-time highs. QQQ could be a leading indicator of the overall market, and if this bull run is going to be a v-shape recovery

Comment:

I think we might see a little sell off at the close today. We looked overbought and I think we may get some news. Going to initiate a short with a tight stop loss. Lets see how this goes