MTUM is the ETF ticker which tracks momentum.
The pink lines show a megaphone pattern, which is bearish when tilted up. education.howthemarketworks.com
The inner white trendlines of the megaphone show price hitting the angled resistance.
The angled resistance crosses the current white price trendline on 12/13.
Going back in...
If MTUM is a momentum based indicator ETF, and is related to SPY, then the following patterns would confirm SP500 bearish correction is coming.
MTUM is the iShares ETF "Exposure to large- and mid-cap U.S. stocks exhibiting relatively higher price momentum" www.ishares.com
In the pattern we see ...
Looks like MTUM is out of momentum.
This contributes and confirms that SPY should be pulling back. MTUM and SPY are correlated.
Daily view shows megaphone top. (or Broadening Top thepatternsite.com)
Megaphone Top can breakout either direction. Given the tilt of this megaphone, I feel the price is falling backwards against momentum.
Shortly before a significant drop in SPY, and after a period of high correlation, the correlation between SPY and MTUM (Momentum stock index) seems to drop below .50. 4/5 cases there is a small to medium drop. The green arrow indicates a case where this pattern predicts a move down, but instead there is a move up. Based on this data I have concluded that it is...