SPY Daily and 4 Hour Charts side by side
Potentially an upswing is more likely as the cycles are resetting for an upswing but not without resistance. As you can tell in the daily chart there is upward resistance within a (short or longer term) Lauguerre downtrend. The quick rise was stopped short and may have to cycle downward before gaining a better footing. Note: The EWS shows a reversal while the ESPF in the lower right may or may not cross.
Although Bulkowski gives the cup and handle a rank of 3 out of 39 patterns with a average rise of 54% and a throwback rate of 62%
Throwbacks, I believe he explains are weak trends that can reverse due to resistance. He mentions that 97% of the time chart patterns with upward breakouts perform better after the breakout without a throwback.
Bulkowski then asks if the pattern has a wide or narrow pattern (on daily chart). Wide patterns are more successful also with higher volume. This looks narrow and part of a pause or reversal (everyone is talking about higher than normal volatility anyway.
I focus on the broader index for clues to trae S&P Futures. There are signs this is a weak recovery or even a downtrend forming so be advised to avoid overhead resistance when trading.
Although Bulkowski gives the cup and handle a rank of 3 out of 39 patterns with a average rise of 54% and a throwback rate of 62%
Throwbacks, I believe he explains are weak trends that can reverse due to resistance. He mentions that 97% of the time chart patterns with upward breakouts perform better after the breakout without a throwback.
Bulkowski then asks if the pattern has a wide or narrow pattern (on daily chart). Wide patterns are more successful also with higher volume. This looks narrow and part of a pause or reversal (everyone is talking about higher than normal volatility anyway.
I focus on the broader index for clues to trae S&P Futures. There are signs this is a weak recovery or even a downtrend forming so be advised to avoid overhead resistance when trading.