SPY EFT ... Channels within ChannelsThe SPY ETF has traded within a well defined channel since the beginning of 2022.
Within this major down draft, a more acute channel has been in evidence for the past 2 months. (shaded rose)
Looking at this from a harmonic perspective and bearing in mind that this is a 2 hour window, I see evidence that a cypher pattern is developing with may provide a counter rally to the 430 area and the top of the recent channel.
Overlaying a pitchfork (Schiff) with using points 1,2, and 3 we are able to contain most of the price action except the past several weeks but this is contained in a 1.5 outer edge extension (shaded gray) which has jumped back into its the original fork.
Harmonic projections while less accurate, are often useful.
Bottom line: I am looking for a little luck and a counter trend rally to the 430 area.
Two caveat s.. we need to take out the two 2 horizontal lines (approx. 404 and 407) fairly soon and my momentum indicator in the lower pane needs to be rising/stable and not falling.
Therefore I am waiting for a breech of the two marked blue horizontal lines as a go long signal.
This is educational not investment advice.
Do your own due diligence while watching the bigger picture and review world events as they evolve around you.
This can be a fast and volatile market taht takes no prisoners.
Good Luck and thanks for reading.
Hopefully you found it this useful.
S.
