SPY short- Earnings will disappoint, CPI TA new bearish channel.
SPYIt’s no secret the economy is slowing, people can’t afford to keep paying more so demand is starting to show reduction in earnings, financials are bearish from the breakout in yields that happened in January with a target for 10Y of 3.35 % (hence the selloff and end of bull run). No one was talking about it, but that was why the selloff started.
Also DXY broke out and should rise to around 103 or higher soon, which is bearish for stocks and crypto. Finally, what if the place where this reversal stopped just happened to be a trendline for a bearish paralllel channel heading down, instead of the previous sloping resistance line that made it a bullish falling wedge, now we have 3 solid touches on bearish channel.
Finally, on the daily the SPY is sitting just below the SMA ribbon, which hopefully will hold it back and send it lower, invalidating the reverse head snd shoulders. If you see a strong rejection off the ribbon take advantage of a great shorting opportunity.
Of course do your own DD and short high cover low, buy low sell high. and get yourself 25k in your account to say trade or all the reversals will drive you mad in a bear market. I’ve lost so much unrealized gains because I couldn’t book profits at the end of the day for things bought first thing in the AM.
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