In the chart above, I have marked two separate trends/ wedges.
SPY loves to form wedges. The orange, diagonal line is a trend that has been followed since January 10th. The orange horizontal line is a key support range. I expect both of these to conjoin, forming a wedge in the next few days.
The yellow lines showcase a wedge that has already formed, and that SPY has been contained in since January 24th.
I expect SPY to test the 420 range two more times. The first time, rejecting and bouncing back to the top of the orange trendline. The second time, possibly breaking through to 416, and then further to 410.
On the 1hr chart, we also finished with two Hammer Candles, that both have long wicks and a bit of a Morning Doji Star. In the premarket so far, we are .22% lower than the previous day.
Unless these wedges have a complete break, I will shorting (at least until the 420 price range.)
SPY loves to form wedges. The orange, diagonal line is a trend that has been followed since January 10th. The orange horizontal line is a key support range. I expect both of these to conjoin, forming a wedge in the next few days.
The yellow lines showcase a wedge that has already formed, and that SPY has been contained in since January 24th.
I expect SPY to test the 420 range two more times. The first time, rejecting and bouncing back to the top of the orange trendline. The second time, possibly breaking through to 416, and then further to 410.
On the 1hr chart, we also finished with two Hammer Candles, that both have long wicks and a bit of a Morning Doji Star. In the premarket so far, we are .22% lower than the previous day.
Unless these wedges have a complete break, I will shorting (at least until the 420 price range.)
