SPX / SPY - has been ready to correct for over a week.
Fed Reserve assistance has keep this afloat longer than predicted.
When this happens, the downturn is normally more severe since what is currently keeping us afloat is unnatural.
Blue line - Daily ascending wedge - bearish pattern
Yellow lines - 1HR ascending wedge - bearish pattern
Green lines - Price broke down from Yellow Wedge, but trading in consolidation pattern.
Given current price position in the patterns, RSI, and other indicators, we are overstretched in every aspect.
Given the end of month and overstretched chart, I feel we will see a turn down by next week.
If we only see a small pullback during December, a larger pullback in January or February should occur.
Either we get a pullback in December, or people with Fed money printing assistance are lulled into keeping money in market until next year to avoid capital gains.
SPY is so overextended at this point, I cannot objectively see any path higher.
If we do not see a turn down by end of next week, I will be looking to add another Put farther out or reposition the current Put.
Bearish News for SPX / SPY
Nov. 28 - China Is Walking a Tightrope Managing Financial Risks: Barclays - "multiple bank defaults and red flags at China banks" - youtube.com/watch?v=VcjK0IyNDvk
Nov. 27 - China lashes out after Trump signs bills supporting Hong Kong protesters - marketwatch.com/story/trump-defies-china-signs-bills-supporting-hong-kong-protesters-2019-11-27?mod=home-page
Charts below show Daily Charts with other wedge patterns in better perspective (posted earlier).
Thank you for liking, commenting, throwing up a chart, following, or viewing.
I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
Disclosure - I am long MARA, GBTC, BTCUSD, GDX, VIXY.
Short SPY and AAPL.
Fed Reserve assistance has keep this afloat longer than predicted.
When this happens, the downturn is normally more severe since what is currently keeping us afloat is unnatural.
Blue line - Daily ascending wedge - bearish pattern
Yellow lines - 1HR ascending wedge - bearish pattern
Green lines - Price broke down from Yellow Wedge, but trading in consolidation pattern.
Given current price position in the patterns, RSI, and other indicators, we are overstretched in every aspect.
Given the end of month and overstretched chart, I feel we will see a turn down by next week.
If we only see a small pullback during December, a larger pullback in January or February should occur.
Either we get a pullback in December, or people with Fed money printing assistance are lulled into keeping money in market until next year to avoid capital gains.
SPY is so overextended at this point, I cannot objectively see any path higher.
If we do not see a turn down by end of next week, I will be looking to add another Put farther out or reposition the current Put.
Bearish News for SPX / SPY
Nov. 28 - China Is Walking a Tightrope Managing Financial Risks: Barclays - "multiple bank defaults and red flags at China banks" - youtube.com/watch?v=VcjK0IyNDvk
Nov. 27 - China lashes out after Trump signs bills supporting Hong Kong protesters - marketwatch.com/story/trump-defies-china-signs-bills-supporting-hong-kong-protesters-2019-11-27?mod=home-page
Charts below show Daily Charts with other wedge patterns in better perspective (posted earlier).
Thank you for liking, commenting, throwing up a chart, following, or viewing.
I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
Disclosure - I am long MARA, GBTC, BTCUSD, GDX, VIXY.
Short SPY and AAPL.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.