SPY Weekly Prediction and Historical Corrections Analysis
In the last 3 months there have been 3 major up trends and corrections.
We currently are in the 4th uptrend and a correction might develop in the next 1-2 weeks.
The historical corrections show that the market corrects about 40-60% of the previous uptrend in a quite short period of time. In particular it takes a time between 10% and 50% of the uptrend time to correct. We have been in an uptrend for the last 13 days. A correction might come soon.
The options implied volatility suggests a possible range between $423 and $435 till the end of the next week (9-July-2021). A correction of the previous uptrend should bring back the price to the $423 support.
The whole setup seems a perfect point for a correction. However, as we can see from the technical indicator William%R, a positive accumulation is possible. In fact, we might see a similar situation like the one developed in the second uptrend area. In this case the price might continue rising in the next 1-2 weeks postponing the correction further in the future (3-4 weeks). We expect a price between $435 and $423 by the end of next week.
We currently are in the 4th uptrend and a correction might develop in the next 1-2 weeks.
The historical corrections show that the market corrects about 40-60% of the previous uptrend in a quite short period of time. In particular it takes a time between 10% and 50% of the uptrend time to correct. We have been in an uptrend for the last 13 days. A correction might come soon.
The options implied volatility suggests a possible range between $423 and $435 till the end of the next week (9-July-2021). A correction of the previous uptrend should bring back the price to the $423 support.
The whole setup seems a perfect point for a correction. However, as we can see from the technical indicator William%R, a positive accumulation is possible. In fact, we might see a similar situation like the one developed in the second uptrend area. In this case the price might continue rising in the next 1-2 weeks postponing the correction further in the future (3-4 weeks). We expect a price between $435 and $423 by the end of next week.
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