SPY Next Steps
Updated
Hi team, here are the next steps for the SPY.
Background) We broke above the USTL, cleared and closed above the 4hr 49 EMA, setting the new bullish run to complete this bull trap.I see this as confirmation. Futures looking to open slightly lower, however that could be quickly over run by the bulls and keep squeezing shorts.
Option 1) Retracement to 50% fib level, bull trap completes and we re-test previous lows. Possibly some minor LL to get there.
Option 2) Retracement continues up to 61.8% fib level, then bull trap completes and we re-test lows.
Clearly the markets are running of crumbs for "good news", which should come to a halt in the next week before resuming the bear run. Possibly some minor LL to get there or another test of 50% fib as support.
Thoughts and comments welcome.
Not trading advice, just my opinion.
Cheers
Background) We broke above the USTL, cleared and closed above the 4hr 49 EMA, setting the new bullish run to complete this bull trap.I see this as confirmation. Futures looking to open slightly lower, however that could be quickly over run by the bulls and keep squeezing shorts.
Option 1) Retracement to 50% fib level, bull trap completes and we re-test previous lows. Possibly some minor LL to get there.
Option 2) Retracement continues up to 61.8% fib level, then bull trap completes and we re-test lows.
Clearly the markets are running of crumbs for "good news", which should come to a halt in the next week before resuming the bear run. Possibly some minor LL to get there or another test of 50% fib as support.
Thoughts and comments welcome.
Not trading advice, just my opinion.
Cheers
Note
Any thoughts of what could determine the strength of resistance at the two fib levels would be a great discussionNote
Let's see how today pans out.Close above 2750, then we are heading to 2900
Close below 2650, then heading to 2350 (Interim)
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