Bullish Falling Wedge on SPY with potential path to Price Target
SPY appears from this chart to be in a long falling wedge, a generally bullish pattern with price target at the yellow dashed line. At time of writing, SPY is about to open for the 11/01/2023 trading day, with Fed action likely to determine immediate direction.
If PA can break above and hold above the red macro support line at 420.18, it could signal an intraday move up to retest 242.77, and with positive fed news, could signal a market appetite for a trend reversal, which would be in keeping with the overall wedge pattern.
Unsubstantiated prediction: SPY could very well break above 420.18, hit its head at 424.77, and range there as it did between Oct 23rd and 25th. I'll be looking for it to retake the green rising channel to indicate a more bullish trajectory, but for the moment, the green arc pathway similar to PA between the 23rd and 25th is my prediction, completing a macro Head and Shoulders pattern and setting SPY up for more gains.
Assuming a rejection at 420, SPY is likely to range between 409 and 417 until the market gets a sense of macro-clarity.
If PA can break above and hold above the red macro support line at 420.18, it could signal an intraday move up to retest 242.77, and with positive fed news, could signal a market appetite for a trend reversal, which would be in keeping with the overall wedge pattern.
Unsubstantiated prediction: SPY could very well break above 420.18, hit its head at 424.77, and range there as it did between Oct 23rd and 25th. I'll be looking for it to retake the green rising channel to indicate a more bullish trajectory, but for the moment, the green arc pathway similar to PA between the 23rd and 25th is my prediction, completing a macro Head and Shoulders pattern and setting SPY up for more gains.
Assuming a rejection at 420, SPY is likely to range between 409 and 417 until the market gets a sense of macro-clarity.
Comment:
Note: The thick, gold lines delineate the falling wedge. It's difficult to see unless one zooms out.
Comment:
In the second paragraph above, where it reads "it could signal an intraday move up to retest 242.77, and with positive fed news..." should read as 424.77, not 242.77.