SPY went bearish after completing head and shoulder on 4 hour inside the descending broadening wedge(DBW) and coinciding with Romey Rome A.K.A. Jerome "The Putz" Powell speaking.
SPY looks to be forming bullish and bearish head and shoulder patterns.
I am certain SPY will drop to the 786($384) micro retracement of the descending broadening wedge but there are three paths after that I see.
If SPY stays in the DBW it will most likely reverse around where the wedge and Fib retracements intersect since it has done it twice already:
-The 786($406) Feb 23, 2022
-The 618($356) June 17, 2022.
This leaves:
1)The 500($323) late September 2022. My longtime thesis of spy.
2)The 382($294) late December 2022. More likely now
3)The 232 early April 2023. Dear God we have broken the macro ascending channel.
This gives the different paths we see. Note that these paths are based on SPY volatility remaining within the current parameters. Should volatility change, these paths are no longer accurate. If volatility increases to early pandemic levels, we can see all retracement levels hit in the DBW.
Note: Breaking below $285 before late January 2023 = We are screwed
SPY looks to be forming bullish and bearish head and shoulder patterns.
I am certain SPY will drop to the 786($384) micro retracement of the descending broadening wedge but there are three paths after that I see.
If SPY stays in the DBW it will most likely reverse around where the wedge and Fib retracements intersect since it has done it twice already:
-The 786($406) Feb 23, 2022
-The 618($356) June 17, 2022.
This leaves:
1)The 500($323) late September 2022. My longtime thesis of spy.
2)The 382($294) late December 2022. More likely now
3)The 232 early April 2023. Dear God we have broken the macro ascending channel.
This gives the different paths we see. Note that these paths are based on SPY volatility remaining within the current parameters. Should volatility change, these paths are no longer accurate. If volatility increases to early pandemic levels, we can see all retracement levels hit in the DBW.
Note: Breaking below $285 before late January 2023 = We are screwed