Short

SPY- Bearish Megaphone - Update

Updated

Just posting another update here on the SPY as it closed out the week with a hard rejection off of its 200-Day SMA & a significant RSI-Based supply level. Additionally, it would appear that a bearish megaphone is still playing out as it was simultaneously rejected off the upper trendline (See previous charts below). On top of this, a bearish butterfly harmonic pattern has formed on the daily timeframe accompanied by some slight bearish hidden divergence on the RSI. On another note, the RSI is now in overbought territory & it would look like the MACD is about to form a death cross; with buyer volume decreasing relative to seller volume increasing, it will be interesting to see where the SPY goes from here, especially heading into a big week economically speaking. Just some FIB levels and RSI-based supply and demand zones to keep an eye on in the meantime- (Previous Charts Attached Below)

--Previously Charted--
https://www.tradingview.com/chart/SPY/5s5D4ME1-Bearish-Megaphone-on-the-SPY-Update/
https://www.tradingview.com/chart/SPY/1c8wSGtq-SPY-Bearish-Update/https://www.tradingview.com/i/vOAT514J/

Note

- Bearish butterfly harmonic pattern formed
- Death Cross as the 200-Day SMA crossed below the 50-Day SMA
- Price action was being driven by volume as pictured on the RSI
- RSI was hovering in overbought territory accompanied by some slight hidden bearish divergence (Not Pictured)

jacobosiason7

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