$SPY Approaching Confluence of Resistance
While most analysts and stock gurus seem to be looking to 390 as the end-point for this little bear market rally we are seeing, I am looking for resistance the 50% channel retracement level ( dotted green line - 379.5 and falling) of the 2022 macro move to the downside (all-containing 2022 downtrend channel), and resistance at the 381 level (ascending red channel, drawn from the 2020 low to June 17th Swing-low).
A break above 381, and confirmation of the yellow channel would be a bullish scenario, at least short-term.
A definitive rejection at the 50% retracement level could quickly send us back to the 374 level, or lower.
Note - The ascending gold channel and Green channel from the pandemic lows are included in this chart to show how these rays, drawn from the 2020 low, have become support/resistance points.
A break above 381, and confirmation of the yellow channel would be a bullish scenario, at least short-term.
A definitive rejection at the 50% retracement level could quickly send us back to the 374 level, or lower.
Note - The ascending gold channel and Green channel from the pandemic lows are included in this chart to show how these rays, drawn from the 2020 low, have become support/resistance points.
Note
EDIT: The red channel is the channel of interest for the break above 381Note
Looking back at June run-up, this one looks eerily similar... Which could lead to the next confluence of resistance at that 390 level... The 61.8% Retracement level AND big-time price action resistance.
Disclaimer
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.
Disclaimer
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.