Spy Looking to form Head and Shoulders.
Updated
I kept the old line I drew from our last drop, I feel it will act as a strong support in any downward channel.
The red line is drawn from todays rejections. We made 2 desperate jumps to the upside in order to breach the yellow line I drew previously. Both of these failed and were met with a bearish drag down in price.
I see it as a nice head and shoulders pattern.
I expect us to complete the rounding top that we are currently in next week and float around 445-452. If we stay under that red line it will confirm our downward path in my eyes. If we breach the rounding top and head into 454-456 then we may have to wait a while longer for the downtrend to resume.
I have some puts expiring 4/18 and 4/29. April is usually a strong month for stocks. But the last 2 weeks have seen us pour on 8% of gains. I do not think this will be your standard April.
I expect before we climb we will need to clear that red line I have drawn and move well above it to end the day.
Hope you enjoyed the artwork.
The red line is drawn from todays rejections. We made 2 desperate jumps to the upside in order to breach the yellow line I drew previously. Both of these failed and were met with a bearish drag down in price.
I see it as a nice head and shoulders pattern.
I expect us to complete the rounding top that we are currently in next week and float around 445-452. If we stay under that red line it will confirm our downward path in my eyes. If we breach the rounding top and head into 454-456 then we may have to wait a while longer for the downtrend to resume.
I have some puts expiring 4/18 and 4/29. April is usually a strong month for stocks. But the last 2 weeks have seen us pour on 8% of gains. I do not think this will be your standard April.
I expect before we climb we will need to clear that red line I have drawn and move well above it to end the day.
Hope you enjoyed the artwork.
Note
This week will be interesting. It is possible we actually head to 460s, Thankfully my Puts have a month to them. This will be one hell of a drop. I am watching rocketships get posted on reddit and meme stocks pump. It feels very astroturfed and ridiculous. Greed is back to an all time high. Delusional. Lets see how long it lasts. I might put down another short spread if we crack 460 because it will just be too juicy of a position. Wages rose 3.4% on average. Inflation is 8% and could go as high as 10%. Remember that the gas prices (which are up 20% in the last month) were not included in the last CPI report. We will get a new report on April 12th and the Fed will start getting very hawkish. May 3rd is the date for the Feds meeting.
Personally I say this week may have some juice left to the upside but probably the week before CPI comes out we will turn more bearish.
TLDR: No big worries. If we crack 460 I will add on another spread 450-380 with a 415 target expiring April 29th. Either way we will be coming down prior to the Fed meeting on May 3rd.
Patience is a virtue.
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