SPY - Short Term Long Bias
1. Bouncing off support from 1st pullback near prices of $260. Ever since the SPY came back down near the $260 zone we have been seeing a lot of fighting between bull and bears... this tells us the $260 is a battle zone with strong support
2. Look at the SPY on a 180 day chart or a time frame that shows some intra-day action. The 180 day chart shows a clear higher low bounce signaling increase buying pressure and confirmation of possible trend reversal.
3. Friday's Massive dump can be seen as an aggressive bearish move to retest the most current lows of $255... Ideally this is reinforcing ^^^^ 2.
4. The SPY has attempted to fully break the $260-$255 area and has failed to do so.... short sellers and bearish bias traders are losing patience and are becoming nervous. This will result in a short seller cover pops, and short squeezes.
Conclusion:
Markets are in very uncertain times with FOMC - Fear of market crash,Trump shenanigans on twitter, and politics of trade war. The markets have been up and up for many years with out any significant pull backs. The markets are well over due for a correction. Interest rates are going 4 fold this year.... ideally 4 interest rate hikes in 2018 will take place. This should ripple affect and slow down consumer buying. The SPY right now is in a long term bearish pattern and chart development, but as of right now it is in a short term 1 week - 2 week bullish bounce.
1. Bouncing off support from 1st pullback near prices of $260. Ever since the SPY came back down near the $260 zone we have been seeing a lot of fighting between bull and bears... this tells us the $260 is a battle zone with strong support
2. Look at the SPY on a 180 day chart or a time frame that shows some intra-day action. The 180 day chart shows a clear higher low bounce signaling increase buying pressure and confirmation of possible trend reversal.
3. Friday's Massive dump can be seen as an aggressive bearish move to retest the most current lows of $255... Ideally this is reinforcing ^^^^ 2.
4. The SPY has attempted to fully break the $260-$255 area and has failed to do so.... short sellers and bearish bias traders are losing patience and are becoming nervous. This will result in a short seller cover pops, and short squeezes.
Conclusion:
Markets are in very uncertain times with FOMC - Fear of market crash,Trump shenanigans on twitter, and politics of trade war. The markets have been up and up for many years with out any significant pull backs. The markets are well over due for a correction. Interest rates are going 4 fold this year.... ideally 4 interest rate hikes in 2018 will take place. This should ripple affect and slow down consumer buying. The SPY right now is in a long term bearish pattern and chart development, but as of right now it is in a short term 1 week - 2 week bullish bounce.
