SPY Upper Channel overextended
If you draw a trend line on top of the price candlesticks, you get the upper level of the channel, which seems to be overextended.
This has not meant a strong reversal necessarily, but more of a consolidation period.
Interesting to note:
- the 50sma has been an important level for some time
- the lower Bollinger Band has also acted as a potential support
As the 50sma and the lower BB get close, they may act as multiple support, for a potential buy the dip scenario. (look at the drawn green circles)
Seasonality wise, April is one of the strongest months, only after November. May isn't too bad, as it has closed higher than it opened, 68% of the time for the past 20 years; June however, is one of the worst months for the past 20 years (just after January), with a positive outcome 58% for the past 20 years.
If you would like to check seasonality for any symbol, let me know and I will be happy to assist.
Hope everyone has a great weekend.
This has not meant a strong reversal necessarily, but more of a consolidation period.
Interesting to note:
- the 50sma has been an important level for some time
- the lower Bollinger Band has also acted as a potential support
As the 50sma and the lower BB get close, they may act as multiple support, for a potential buy the dip scenario. (look at the drawn green circles)
Seasonality wise, April is one of the strongest months, only after November. May isn't too bad, as it has closed higher than it opened, 68% of the time for the past 20 years; June however, is one of the worst months for the past 20 years (just after January), with a positive outcome 58% for the past 20 years.
If you would like to check seasonality for any symbol, let me know and I will be happy to assist.
Hope everyone has a great weekend.
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