SPY "W" Shaped Correction After Touching 300MA - Short then Long
As of close Feb 18th we're still on track for a W shaped correction with a likely bounce at the 300 day moving average on 
SPY. SPY closed today at 434 and the 300MA is currently at 426, implying about 2% more drop on SPY before potential correction. For reference, SPY hit 420 on 1/24 where for the first 300MA bounce occurred. If we get another bounce off the current 300MA (~426), we're likely to retest all time highs as per the previous six SPY corrections. If we blow through 300MA, get your puts and other hedging strategies ready.
Please note, this is not my idea but an update of the pattern and trade idea published by thetravelingtrader (https://twitter.com/travelingcrypto) on Feb 2nd, 2022.
SPY. SPY closed today at 434 and the 300MA is currently at 426, implying about 2% more drop on SPY before potential correction. For reference, SPY hit 420 on 1/24 where for the first 300MA bounce occurred. If we get another bounce off the current 300MA (~426), we're likely to retest all time highs as per the previous six SPY corrections. If we blow through 300MA, get your puts and other hedging strategies ready. Please note, this is not my idea but an update of the pattern and trade idea published by thetravelingtrader (https://twitter.com/travelingcrypto) on Feb 2nd, 2022.
Note
Letting pattern play out for just over a month now we see the completion of the W shape only it dipped passed 300MA and down to 410 supply zone from April to May of 2021, then bounced, completing a second W formation with near term resistance expected at $455 and even more so at $460. We may be setting up for a inverted Head & Shoulders pattern which would also have strong resistance at the neckline at $460 but if it breaks through we revisit SPY all time highs.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.