SPY to 460 by Q3?
Updated
As expected, SPY rallied off its $436 Fib level, and is now sitting right along the $442 zone, as well as the 0.618 ascending trend level.
I have measured out each bullish extension SPY has made from previous selloffs of this magnitude at this same RSI level.
MacD is certainly bullish and RSI has hard support at ~16.
SPY didn't drop *as* hard as previous monthly corrections, but I believe the hesitancy in pre-market futures reflected that, and buyers rejected the selloff regardless.
There is a very slight chance we see a modified double bottom similar to the one in mid-May, marked with the red arrow.
Red solid lines indicate the levels where this might occur.
However I don't see this as being very likely. I am more interested in the fact that two of the aforementioned measured moves take us directly to $460 in a month's time.
This is a key Fibonacci level when measured from the pre-Covid highs to Covid crash lows (not pictured), and is a commonly accepted bullish target for the index toward the end of the year.
My opinion is that this level will be reached far sooner than expected, and buyers will begin to become extremely cautious following Q3 earnings. Weak earnings or further taper catalysts could spell the end for Mr. Spy's Wild Ride.
Fib Time zones predicting significant price action on Friday, September 17th. I wouldn't bet on this at all but just laying it out there in hopes of a Babe Ruth event.
I have measured out each bullish extension SPY has made from previous selloffs of this magnitude at this same RSI level.
MacD is certainly bullish and RSI has hard support at ~16.
SPY didn't drop *as* hard as previous monthly corrections, but I believe the hesitancy in pre-market futures reflected that, and buyers rejected the selloff regardless.
There is a very slight chance we see a modified double bottom similar to the one in mid-May, marked with the red arrow.
Red solid lines indicate the levels where this might occur.
However I don't see this as being very likely. I am more interested in the fact that two of the aforementioned measured moves take us directly to $460 in a month's time.
This is a key Fibonacci level when measured from the pre-Covid highs to Covid crash lows (not pictured), and is a commonly accepted bullish target for the index toward the end of the year.
My opinion is that this level will be reached far sooner than expected, and buyers will begin to become extremely cautious following Q3 earnings. Weak earnings or further taper catalysts could spell the end for Mr. Spy's Wild Ride.
Fib Time zones predicting significant price action on Friday, September 17th. I wouldn't bet on this at all but just laying it out there in hopes of a Babe Ruth event.
Note
I was a bit optimistic for this time frame! Still, long positions clocked!
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