This is the daily chart of SPY that is displaying, in my opinion, a megaphone pattern that will likely resolve to the downside. As evidence of this being a megaphone pattern is the disjointed trend lines as well as the relatively large volumes that correspond to the "higher highs" and "lower lows." My reasoning for expecting this to be a reversal pattern stems from seeing bearish divergence in a number of indicators- the daily chart displays a bearish cross in the True Strength Indicator and the picture that I've included also shows a bearish trend in the TSI.
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I bought Nov 8 255 SPY puts on Friday. S&P futures are selling off modestly right now.. I expect this bearish wedge to break to the downside either on Monday or Tuesday.
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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.