SPY revisited the last low, how now?
Just to recap that after flipping into a (bear) rally, a back flip pushed the SPY further down from 13 September.
The past week was absolutely stunning...
from the SPY daily chart, the week started with a nice rebound, post-gap-down from the previous Friday. Then once the FOMC made their announcement, the SPY just gave way to lower lows (as earlier expected from the TD analysis). In fact, on Friday, althought he SPY did not clock a lower low, it reached within range of the last low in June. And this was met with a late session rebound. Friday's session was significant in the sense that there was yet another substantial gap down, it revisited near the June lows and came back with a late session rebound instead of selling off into the weekend. This candlestick formed tells of a technical rebound early next week. However, the technical indicators are bearish, suggesting that the support of the June lows will be taken out later after the rebound. On the upper side, there are two critical resistance levels. The first is after closing Friday's gap down (at 375) and needs to close above 378. If that happens, we might have another (bear) rally to the next resistance at 392.
On the weekly SPY chart, the candlestick analysis is suggesting that the bearish momentum is not yet abating. MACD crossed under its signal line, in the bear territory. A very big hint of the weeks' downside to come...
The bigger picture downside target of 325 around the end of October is still valid and feasible. Reviewing the candlestick patterns since August show very reliable patterns per candle and as a collective set of candestick patterns... mostly to the downside for now. Noted too that the weekly candle broke down below the Hull EHMA (bearish).
Overall, still down, after an anticipated technical rebound (early) next week.
The past week was absolutely stunning...
from the SPY daily chart, the week started with a nice rebound, post-gap-down from the previous Friday. Then once the FOMC made their announcement, the SPY just gave way to lower lows (as earlier expected from the TD analysis). In fact, on Friday, althought he SPY did not clock a lower low, it reached within range of the last low in June. And this was met with a late session rebound. Friday's session was significant in the sense that there was yet another substantial gap down, it revisited near the June lows and came back with a late session rebound instead of selling off into the weekend. This candlestick formed tells of a technical rebound early next week. However, the technical indicators are bearish, suggesting that the support of the June lows will be taken out later after the rebound. On the upper side, there are two critical resistance levels. The first is after closing Friday's gap down (at 375) and needs to close above 378. If that happens, we might have another (bear) rally to the next resistance at 392.
On the weekly SPY chart, the candlestick analysis is suggesting that the bearish momentum is not yet abating. MACD crossed under its signal line, in the bear territory. A very big hint of the weeks' downside to come...
The bigger picture downside target of 325 around the end of October is still valid and feasible. Reviewing the candlestick patterns since August show very reliable patterns per candle and as a collective set of candestick patterns... mostly to the downside for now. Noted too that the weekly candle broke down below the Hull EHMA (bearish).
Overall, still down, after an anticipated technical rebound (early) next week.
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