The SPY dropped strongly from its high but found support at a major level where there is a Big Red AKA 200-day moving average, a rising trendline, and the Fibonacci retracement level of 0.618 from the lows (December) to the high (February). This level of support is amazing and very strong for now. As I mentioned in the weekend edition (check below), the SPY found its low at the start of the week and is now ready to move up. It is uncertain how far it will go, but it is almost certain it will reach the blue box or the 0.5 to 0.618 Fibonacci retracement level from the February high to today's lows.
The volume is lagging, but it is not the end of the day, so it could still become stronger.
The price found support at the Big Red, which is very bullish, and for now, it is above the 50-day moving average, which is also bullish.
The RSI corrected itself and is now ready for an up move.
The MACD is at the zero line and needs to start going up for bullish momentum; otherwise, it will fall hard.
Overall, the SPY found very strong support at the above-mentioned levels and is ready for an up move. Today, we formed a bullish engulfing reversal candle, which is a very strong bullish sign. Now, there is only one question: will the SPY retest the FIB resistance level (0.5 to 0.618 area) and fall very hard and fast, as I analyzed in the last report (check the box below), or are we ready to visit the upper line of the rising wedge?
Personally, I give an 80% chance to a retest of the blue box or the FIB zone levels, and then a drop, just due to the fact that inflation is horrible, and there is no sign of it slowing down. Therefore, there is no sign of a pivot or a soft landing.
The volume is lagging, but it is not the end of the day, so it could still become stronger.
The price found support at the Big Red, which is very bullish, and for now, it is above the 50-day moving average, which is also bullish.
The RSI corrected itself and is now ready for an up move.
The MACD is at the zero line and needs to start going up for bullish momentum; otherwise, it will fall hard.
Overall, the SPY found very strong support at the above-mentioned levels and is ready for an up move. Today, we formed a bullish engulfing reversal candle, which is a very strong bullish sign. Now, there is only one question: will the SPY retest the FIB resistance level (0.5 to 0.618 area) and fall very hard and fast, as I analyzed in the last report (check the box below), or are we ready to visit the upper line of the rising wedge?
Personally, I give an 80% chance to a retest of the blue box or the FIB zone levels, and then a drop, just due to the fact that inflation is horrible, and there is no sign of it slowing down. Therefore, there is no sign of a pivot or a soft landing.
Note
Yesterday's reversal shooting star candlestick pattern... Is it already over? Could be easy.
Consistency is the key of success....
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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.
Consistency is the key of success....
Related publications
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.