RSP's Head & Shoulders
Clearly bearish as we broke through the head & shoulder pattern's neckline. Likely to consolidate slightly around $105-$107 before heading lower. Currently finding support around the 100d-EMA right now, but imo, likely to head lower over the coming weeks. You can also see a "double top" pattern when you look at my top-most yellow rectangle. Each yellow rectangle represents likely support/resistance zones.
If I had to guess, I'd say we're bearish until the end of October or mid-November.
Keep in mind, the RSP is an equal weighted ETF of the S&P500 index. This means that, imo, the RSP gives a much clearer picture of how businesses (and the stock market as a whole) are doing. However, I don't believe technical analysis of the RSP (in terms of making buy/sell decisions based purely off of indicators) is extremely accurate. I don't believe it is because most people are looking at the SPY for their technical analysis to make buying/selling decisions.
When technical analysis is correct, it is my personal belief that it is because of the self-fulfilling prophecy that many other people see the same thing and are making the same decisions at the same time. Thus, the SPY is better for deciding short-term buy/sell decisions. I think the RSP gives a broader, clearer long-term picture of market direction which should be used as a tool in tandem with the SPY and your own strategy.
If I had to guess, I'd say we're bearish until the end of October or mid-November.
Keep in mind, the RSP is an equal weighted ETF of the S&P500 index. This means that, imo, the RSP gives a much clearer picture of how businesses (and the stock market as a whole) are doing. However, I don't believe technical analysis of the RSP (in terms of making buy/sell decisions based purely off of indicators) is extremely accurate. I don't believe it is because most people are looking at the SPY for their technical analysis to make buying/selling decisions.
When technical analysis is correct, it is my personal belief that it is because of the self-fulfilling prophecy that many other people see the same thing and are making the same decisions at the same time. Thus, the SPY is better for deciding short-term buy/sell decisions. I think the RSP gives a broader, clearer long-term picture of market direction which should be used as a tool in tandem with the SPY and your own strategy.
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