SPY looking to crack after Election Rally
I drew this neon blue channel that I felt we were headed down last week. The fed meeting caused us to crash right through it as Powell really laid it on thick with the talk of rate hikes and future demand destruction.
We broke the yellow support lines on that news, which to me is bearish since it forecasts that the market is willing to make another leg lower if given the opportunity.
We were heavily oversold on the short time frame and the election rally was in full swing (Drawn in the white channel)
Late last night futures started to sell off which I drew in the darker blue channel.
all of this chop has brought us back into the original neon blue channel. I would be watching this to see if we can confidently break out of it or if we do start sliding down.
Overall I am bearish with the potentially high CPI numbers coming out this Friday.
Just my opinion
We broke the yellow support lines on that news, which to me is bearish since it forecasts that the market is willing to make another leg lower if given the opportunity.
We were heavily oversold on the short time frame and the election rally was in full swing (Drawn in the white channel)
Late last night futures started to sell off which I drew in the darker blue channel.
all of this chop has brought us back into the original neon blue channel. I would be watching this to see if we can confidently break out of it or if we do start sliding down.
Overall I am bearish with the potentially high CPI numbers coming out this Friday.
Just my opinion