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Price action has been unfolding in a parallel channel thus far on SPY on the recent expected rebound. This is looking like a flag pattern on the chart, which would project a minimum move of the May decline down from the breakout point if prices break down below the lower channel line of the flag. A break of the lower channel with a gap down would be ideal confirmation of continuation.
Weekly MACD on the SPY is opened up to the downside indicating a bearish larger momentum trend, but the weekly stochastics is now oversold (though not crossed up into bullish configuration). So for new trade opportunities it would be wise to wait for a new bearish cross on the daily stochastics in order to confirm a likely continuation of downward momentum.
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