I expect the S&P 500 to decline in price based on the technical indicators and explanations in this chart. I welcome any comments and feedback.
A new down trend is expected based on the v-reversal pattern. There is support at 409 which is a 28% drop from the current price. That, coupled with light volume, indicate price for the SPY should decline. Also, if you look at the long term trendline of the S&P 500 (far left), that trend line is too steep and unsustainable. Interestingly, there is also a long term decline in volume since 2009. Currently, RSI is not over 70 so the market could push slightly higher but a new up trend is not expected.
A new down trend is expected based on the v-reversal pattern. There is support at 409 which is a 28% drop from the current price. That, coupled with light volume, indicate price for the SPY should decline. Also, if you look at the long term trendline of the S&P 500 (far left), that trend line is too steep and unsustainable. Interestingly, there is also a long term decline in volume since 2009. Currently, RSI is not over 70 so the market could push slightly higher but a new up trend is not expected.
Note
Correction: The pattern in April is not a Measured Move with a 35% price drop. It's a 6% decline in price and is a Bullish Falling Wedge continuation pattern.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.