If history can tell us anything, I think it would tell us that a massive crash is imminent. The bull rally from the last years lows has been fueled by hyperinflation... it has been an artificial growth in our economy so we could stay up there with China and Russia.
As you can see the SPY is in a rising wedge which is a bearish pattern.
We should see a dip from 25-40% in the coming weeks. It has been reaching new ATH and also closing in on the wedge resistance.
A lot of companies have been selling off a lot of their shares to have a lot of cash and buying power in the crash.
It would be a smart option to sell the majority...
Sp500 is starting to crash. You can check my previous content as to why but a quick breakdown is as follows;
News catalyst (colonial pipeline)
big tech/sp500 divergence
QQQ/SPY follows simple trend lines surprisingly closely. We had a bounce back of the Qs recently pre-earnings and after Treasuries settled down, but it recently rejected its dot-com high after breaking above it in February.
Given the insane outperformance in 2020, there's a long way down if QQQ continues to underperform SPY, with the top of its multi-year channel...
Not enough is said of the relative underperformance of SPY relative to QQQ since the tech bubble - adding up to 80% over the past 20 years. And, this is based on actual fundamentals, with tech's profits growing much faster than the general market.
While everyone's fixated on the "reopening trade" by investing in companies and industries in secular decline with...
WORRYING TREND FOR NORMAL PEOPLE
WITHOUT ASSET EXSPOSURE.
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CASH IS BEING BURNED AT AN ALARMING RATE
TO BENEFIT WHO?
DO WE NEED HIGHER STOCK PRICES
IF THESE COMPANIES JUST HOARD THAT MONEY... AND ACQUIRE MORE ASSETS
WITHOUT INVESTING THAT FREE MONEY INTO JOBS?!
SPY, ETF of S&P 500 might decrease to around 360 level to fill up the gap of daily RSI Divergence. Besides Bitcoin will touch $40,000 level. We might see the correction in a very short time. After that market might enter into the final Elliot Wave and SPY might move to 425 level. We might see this rally from the last week of March to 3 rd week of May. When...
So we hit the 380 target and now we are bouncing, this should be a very strong move higher potentially breaking the 392 level by (wed, march 3rd).
I didn't take the long because option prices were so expensive.
There may be a short next (wed, thurs, fri) when option prices are cheaper and reward to risk increases.
Prices are unsettling these few days due to the results of USA presidential election which was just over
With current TA prices are moving erratically due to many uncertainties
Prices also tested the previous high resistance and "knocked" back down strongly
In this situation, it would be best to observe the price movement for the next few days and avoid taking trades
SPY S&P 500 ETF found support on the 200 sma while making slightly higher lows breaking the 3/1 gann fan line that it was reacting too before which was acting as support. Momentum is making higher lows aswell while seeing a huge momentum increase last 4h candles. Next retest level will be the 50sma which will line up with the 2/1 gannfan line at 339$ price levels...