SPY bear flag....then another leg down.
Most people are aware of the fact options expire the 3rd friday of every month, but perhaps you've not noticed how charts respond to this. Quite bearishly, it would seem. It's quite consistent with only a couple months not conforming. This time period also is usually associated with volume spikes.
We are at one of those points. Tomorrow is the 3rd friday of the month, and we've seen price driven down and volume spike yet again. I think it'll go up here for a bit, but then form a bear flag and head back down. I chose the Quarterly S1 support line as the landing spot at $439-$441. What it does there is anyone's guess at the moment, but I'd at least expect a pause in the selling. I am not holding out much hope in the near term for the market indices, but all it would take is one very positive inflation report to surface and sentiment could swing back to bullish.
AMEX:SPY
We are at one of those points. Tomorrow is the 3rd friday of the month, and we've seen price driven down and volume spike yet again. I think it'll go up here for a bit, but then form a bear flag and head back down. I chose the Quarterly S1 support line as the landing spot at $439-$441. What it does there is anyone's guess at the moment, but I'd at least expect a pause in the selling. I am not holding out much hope in the near term for the market indices, but all it would take is one very positive inflation report to surface and sentiment could swing back to bullish.
AMEX:SPY
Comment:
Some tall candles with some very heavy volume, eh? Lots of noise?
Comment:
Nailed it 3 1/2 months ago. Price oscillated right around that pivot point numerous times before beginning the next leg down.