• So far, SPY is heading to the next support at $360.69, indicating we have a few more bucks to drop, and there’s no technical evidence pointing to a reversal. In the daily chart, at least, there’s not a single bullish pattern yet; • We see some open gaps (yellow squares), and they will become targets, in the future, if (and only if) SPY triggers a reaction;
• In the 1h chart we see a possible bullish structure, a Double Bottom chart pattern. Keep in mind, this pattern wasn’t triggered yet, and maybe SPY won’t trigger it at all, but it is important to keep in mind a scenario where it’ll break the $370.21; • By triggering this Double Bottom, SPY would bounce back up to the $388 (its next target); • In my view, I would prefer to see it bouncing after a retest of the $360, but this could work too; • This wouldn’t be a true bullish reversal sign, and maybe would be just a Dead Cat Bounce, but could be the beginning of a true mid-term reversal. I’ll keep you guys posted on this.
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you're back Nathan! that's great! thanks for the analysis as always
Nathan_Black
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@tereneuwald1, Yep :D I'm glad you liked it!
sunriselmi
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first posts here since june 23?
Nathan_Black
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@sunriselmi, That's right, I was too busy recently, but I can't stay away from here for too much! :)
Vibranium_Capital
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its possible, seems so weak rn
anothernic
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I was debating whether or not that crazy Friday close with that 1.37% recovery from the wick was still a proper double bottom. I often discount wicks because the price couldn't hold there, and I'm inclined to do so here.
I agree we're overdue for a deadcat, especially looking at oversold RSI 14-21 on the dailies, but weekly we're just getting started on sell volume / MACD. Vaguely expect one more test of 370 before crater to <330, but time will tell.