After the big rally today we finally hit some resistances and reached the 22 day EMA. From here we have some room between the 11 day EMA and 22 day EMA for some slightly upward movement/sideways movement, but then joining the dominant down trend again I expect us to retest the ~257.70 low from March 23rd.
Although we have a long down trend, we hit the 200 day moving average. From here expect strong resistance, especially approaching the initial drop zone. Look for an initial gap down on Monday and a run up from there as it did in the initial drop.
The initial rising wedge broke down and ended at a bullish harami. At that point we had a a few days in a trading range and finally today another breakdown. The MACD has a bearish divergence and the 11 and 26 day EMAs have crossed over. After filling todays gap and approaching the EMA zones, I expect the SPY to test the 264 area (shown by the purple circle) and...
