$SPY: price is heading up into resistance. Decision point.

analyses are provided on three timeframes with the primary purpose of showing how simplicity & consistency may help to avoid mass media noise disruption and get a clear picture.

Currently, we have uptrends on a monthly and weekly basis. Simply following all-new swings, forming higher highs or lower highs, and higher lows or lower lows, we can see what the price is doing in reality, not in our expectations or mass media expert expectations, a ka forecasts. This exercise is useful for training your eye and providing a clear answer: where the price is NOW.

And where will the price be soon? First, it depends on deciding the exact timeframe, 1 sec, 1 min, 15 min, 4 hours, 1 day, 1 week, etc., and not to overthink things. It is funny, but not overthinking is not a very easy task, at least on my end.

For this theoretical exercise, the most fun is happening on a daily basis. Monthly and weekly are the lenses that help to figure out what is going on on a daily basis. The more possibility (not probabilities) right now is that the price will continue to rise. The detailed analysis is on the charts.

The sentiment data source is aaii.com/sentiment-survey. And a cherry on the cake, we are in a very bearish environment right away, having a significant skew vs the historical average.

Why does it matter?

The answer is that when the sentiment is at its extremes, the move is likely to be in the opposite direction. I learned it by reading Twits by Linda B. Reschke, then checked on my own, and now I always keep an eye on this source.

Stay profitable!

No financial and investment advice here, only personal thoughts are provided for informational purposes only

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