SPY is forming a reversal narrowing ascending wedge pattern
SPYs recent rally has now started to form a narrowing ascending wedge pattern. This is a reversal pattern which could lead to a sell off once complete.
While I want this bear market to come to a close, we still have more trouble to work through. The Fed is focused on inflation which is high.
- The recent rally is not without its bearish news on the horizon.
- the market has become quite optimistic that it believes Fed will adjust rate hike to .25 for the first time.
- Fed has warned about this recent rally will lead to more pain later.
- The way companies have been beating estimates is by lowering EPS guidance.
While I want this bear market to come to a close, we still have more trouble to work through. The Fed is focused on inflation which is high.