SPY expect a reversal before another dip
There is a good H&S pattern formed and the price broke the neckline as of today closing below 367.
the current downtrend could reverse towards a bullish move soon before the next dip down to 320ish.
Analysis:
At present RSI 31 which still has some more room to go down.
Fib support level for 161% of previous up move is at 357.7 at which RSI would be around 18-20 - can take this as early entry for a bullish move to 370ish
Since H&S neckline is broken, we can look towards short at around 370 to go down to 320ish.
the current downtrend could reverse towards a bullish move soon before the next dip down to 320ish.
Analysis:
At present RSI 31 which still has some more room to go down.
Fib support level for 161% of previous up move is at 357.7 at which RSI would be around 18-20 - can take this as early entry for a bullish move to 370ish
Since H&S neckline is broken, we can look towards short at around 370 to go down to 320ish.
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