Looks like the year long uptrend channel has finally broke (It was fun while it lasted). Now we wait and see the next move for $SPY as it makes a recovery bounce off the 100 Day Moving Average. Couple things to look out for before going full BTFD.
Fundamentally speaking: The Evergrande debacle should have very little to do with the US economy, so a continuation back into the bullish uptrend should continue if no other black/gray swan news presents itself. Tapering is still, just in the talks, but no actual tapering is happening, especially when unemployment and GDP remains low. Debt ceiling will likely be extended/suspended so government can go back going BRRRRR on the money printer. Inflation will just keep pushing equity prices higher.
Technicals: The uptrend channel(Green) and 50Day Moving Average has proven to be a reliable support over the year but since breaking below that, this will prove as a major resistance when we make our way back up. Will have to watch this level closely as rejection will prove a lower low and a bearish downtrend will be very plausible. If we soar past these resistances, I believe we will see an even more powerful bullish uptrend leading into the end of the year. Well have to watch closely over the next few days to see what happens. Safe tradings!
Fundamentally speaking: The Evergrande debacle should have very little to do with the US economy, so a continuation back into the bullish uptrend should continue if no other black/gray swan news presents itself. Tapering is still, just in the talks, but no actual tapering is happening, especially when unemployment and GDP remains low. Debt ceiling will likely be extended/suspended so government can go back going BRRRRR on the money printer. Inflation will just keep pushing equity prices higher.
Technicals: The uptrend channel(Green) and 50Day Moving Average has proven to be a reliable support over the year but since breaking below that, this will prove as a major resistance when we make our way back up. Will have to watch this level closely as rejection will prove a lower low and a bearish downtrend will be very plausible. If we soar past these resistances, I believe we will see an even more powerful bullish uptrend leading into the end of the year. Well have to watch closely over the next few days to see what happens. Safe tradings!
