SPY has been coiling since its recent swing high on April 20th and has been forming a subtle rising wedge pattern (red trend lines) due to relatively weak challenges of resistance over the last two weeks. I am VERY short term bullish based almost entirely on the pattern that formed at the end of the day and think SPY will bump up against the top of the wedge toward the end of the week or beginning of next week before falling once again. SPY may continue to coil within the wedge range before breaking down and falling/remaining below $204. For the record, I am still very bearish in the mid to long term and will re-evalue once SPY reaches the upper boundary. If it does manage to break out of the wedge, we may see a challenge of the recent $210 high, but I don't think we'll see a sustained close over the teal line.
TECHNICAL ANALYSIS:
Candlestick: Spinning Top (Bullish spinning top that formed at the bottom of a down swing and closed positive.)
Volume: Positive, strong and rising (Bullish)
Stochastic: Nearing a crossover, fast to overtake slow near 30 (Bullish)
Let me know what you think! Thanks for reading and Happy Trading!
good chart, lets watch it play out, support at 204 should break soon mkt is exhausted & runing out of steam, plus last 18 months s&p has been moving side ways
G13Man
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i am also watching this wedge
OsmanDiaz
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I had definately anticipated (incorrectly) a gap up this morning. Hopefully, buyers will be able to take control in the afternoon and this will close above wedge support. We shall see. Thanks for the feedback G13Man!