SPY Loosing Momentum ! SPYLOVERS DONT PANIC ! Its OKAfter several weeks of analysis, the price reached its all-time highs twice, creating a new extreme. Att his moment is what i call in a no man's land zone. But what do I see in the overall structure?
If you can clearly identify the yellow upward channel, I want you to split it in half, and we will analyze the two parts.
In the first half, we have an active price movement, with clear fluctuations between support and resistance. The high volatility causes the price to move in waves, perfectly respecting support and resistance.
But if you can manage to identify the second half, up until the end of the channel, you'll see that the price shows signs of exhaustion.
Exhaustion, how?
When the price stops having that volatility everyone is looking for, and begins to slow down and starts moving like a worm along the edge of the channel’s support, showing small candles and, above all, losing momentum. (In the chart, I want you to identify the price exhaustion by marking it with a small symbol of a worm crawling along the channel's support.)
This type of behavior happens frequently when the price is losing momentum. In this type of scenario, I am more than certain that we will soon see a move where the price might break out of the yellow channel. Most likely, we will see the price make its natural retracement. After achieving two all-time highs, I believe it's time for the price to take a break, either to consolidate or make a quick decision.
Nevertheless, I am expecting the price to make its natural pullback in the coming week.
We’ll see if it happens.
Best regards, and thank you for supporting my analysis.
