SPY
is a very strong short. I consider this a perfect setup with very little risk in terms of loss and probability. Buy/Sell Signal:
SPY is the ETF of the S&P500, that's why I will look at SPY in my analysis. The S&P had a major run-up since the crisis in 2008. In recent months, it is struggling with among the 300 level. Since the beginning of 2018, the S&P broke multiple support levels and confirmed the lower green SupertrenD support channel. This channel was established in 2015 and predicted the low of December 2018. The recent run-up faces now the red SupertrenD resistance channel which established in the top of 2015. The fact that the current triple top of the S&P never reached the earlier established resistance channel is a strong indicator that the trend is going to be over soon. Another bearish signal is the zero slope of the MultiRSI which indicated a bearish cross in the near term future and the declining volume in the recent run. The trader can enter a short position right now. The Stop-Loss should be the 300 level and should be considered if the S&P established 300 as support or breaks through 300 with massive volume.
Targets:
The first target is the green support channel which will move up over time. The longer it takes to break down, the higher or target will be. Profits can be taken in between 255$ and 240$. If this is the start of a recession, then the next target will be lower. I will give further information for these targets once the short is playing out.
I hope this was helpful!
Best,
Felix Kewa
Trade active
Comment:
Once the MultiRSI is crossing, we will scale in another position.
Comment:
MultiRSI crossed bearish