SPY reached resistance level
Updated
SPY weekly reached pitchfork resistance levels and it's RSI as well. While a breakthrough on the upside is possible I find it more likely that SPY will fall.
Note
It's significant that the price reached resistance both the dotted pitchfork line that follows the arrows as well, for the last 2 arrows also on the red middle pitchfork line. That increases the strength of the resistance and the chances for a fall of the price.Note
also, the big blue down arrow and related red ovals are from earlier ideas (linked in the comments), and can be ignored for nowNote
The situation is similar on the daily chart. The price reached multiple pitchfork resistance levels and RSI also reached previous resistance level as well. Note
I added an additional pitchfork yesterday to SPY 1W, and the price touched the upper line of the pitchfork and now it seems that acts as resistance (see the green arrow and the green pitchfork). Because of this, it doesn't seem (yet) a break through on the up side. We'll see what happens next week. The more likely scenario, IMO, is taht the price will fall to at least around 390. On the other hand, if next week the price breaks through the new, green pitchfork then it may continue higher.Note
Just to clarify, the green line that the high for this week touched seems like a trendline drawn between the high of Aug. 15, 2022 and this week's bar. It's not. The pitchfork is not "fitted" so that the high of current bar touches the upper line of the pitchfork. The fixed points of the pitchfork are its 3 origins, June 13, 2022, August 15, 2022 and Oct. 10, 2022. They predetermine the rest of the pitchfork and nothing after that is "fitted". The price touching the pitchfork this week (to the extent that this holds up) is just the price following the pattern of the pitchfork (to a remarkable extent, I'd add).Note
Anyway, the fact that the price went through the pitchfork line aligned with the 5 blue arrows and to the next pitchfork, likely indicates that, on the longer term, the price is preparing to go up (after maybe one or more short term swings up and down).
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