Very impressive rally, the long was a very good trade. Now we have an interesting price on the SPY, the previous support is now a resistance and the bearish trend line since July is at the same level.
I see a bearish impulsive wave 5 and I suspect that this rally was a correction, very strong correction, but this week could show us the true face of the market.
In this area there is a fibo resistance level, like wave 2 from August/September, I like to plot fibo from the end of wave 2 to the end of wave 5 for corrections, very precise trend change.
RSI and Stoch are showing overbought levels, so it could move up a few points to shake out the bears and then we will see....
If price reverses from here and breaks 433 support it would be very bearish for me.
I see a bearish impulsive wave 5 and I suspect that this rally was a correction, very strong correction, but this week could show us the true face of the market.
In this area there is a fibo resistance level, like wave 2 from August/September, I like to plot fibo from the end of wave 2 to the end of wave 5 for corrections, very precise trend change.
RSI and Stoch are showing overbought levels, so it could move up a few points to shake out the bears and then we will see....
If price reverses from here and breaks 433 support it would be very bearish for me.