Simple Intraday Anatomical Analysis of the SPY breakdown
Updated
So, last Friday the SPY was triggered for a hard down.
And on Monday, there was a gap down opening, marked out by the yellow box which shows the gap range. If the SPY closes above the yellow box, it is reversing trend to bounce upwards; however, if it closes below the yellow box, it reopened the gap and is heading for more downside.
Throughout the trading day, there was a clear attempt to close the Monday gap. And for less than an hour, the gap was closed, only to be promptly reopened. This formed the long overhead tails, that indicate selling, and the territory that the bears are winning. And then the day ended with with a nice down candle with a push down towards closing. Again, a bearish indication. The current issue is that it did not fully reopen the gap, meaning that there was no conclusive closure below the yellow box.
So at this point, it skews the favor slightly more towards the bearish side.
On the daily chart, the resulting candlestick formed is not very bearish (not red for a start) but is indicating through the long-ish tail at the top that some limited downside should be expected.
The Daily technical indicators follow through further into bearish territory.
So, here is the intra-day analysis of the SPY, pointing to a limited downside risk, not one to plunge like last Friday, but a likely lower low, especially after breaking below 402 (and 400 particularly).
It is going to be a very interesting week, especially to review on aday by day analysis... so much to learn of a breakdown anatomically part by part.
Take care!
And on Monday, there was a gap down opening, marked out by the yellow box which shows the gap range. If the SPY closes above the yellow box, it is reversing trend to bounce upwards; however, if it closes below the yellow box, it reopened the gap and is heading for more downside.
Throughout the trading day, there was a clear attempt to close the Monday gap. And for less than an hour, the gap was closed, only to be promptly reopened. This formed the long overhead tails, that indicate selling, and the territory that the bears are winning. And then the day ended with with a nice down candle with a push down towards closing. Again, a bearish indication. The current issue is that it did not fully reopen the gap, meaning that there was no conclusive closure below the yellow box.
So at this point, it skews the favor slightly more towards the bearish side.
On the daily chart, the resulting candlestick formed is not very bearish (not red for a start) but is indicating through the long-ish tail at the top that some limited downside should be expected.
The Daily technical indicators follow through further into bearish territory.
So, here is the intra-day analysis of the SPY, pointing to a limited downside risk, not one to plunge like last Friday, but a likely lower low, especially after breaking below 402 (and 400 particularly).
It is going to be a very interesting week, especially to review on aday by day analysis... so much to learn of a breakdown anatomically part by part.
Take care!
Note
And so, after the first hour of market opening, the SPY fell below support... Gap reopened!
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