SPY With Yet Another Fakeout
Price has been stuck in a descending channel for several months; it is currently facing resistance at the upper end of this channel and looks likely to fall in coming days. Price seemed to breakout past resistance earlier in the day (as it has threatened to do twice before), but this was indeed a fakeout - price has since dropped back into the channel. There are numerous signs that we are in a strong downtrend, a downtrend with no end in sight. For one, price has consistently been making lower highs and lower lows... RSI hasn't reached overbought levels in months... Geopolitical tensions remain high... And perhaps most importantly, the Fed announced its first rate hike in 3 years and signaled many more to come. The signs strongly point to a market selloff making this a great short opportunity. Place stops right around $429 (upper end of channel). PT#1 is $420 and PT#2 is at $410, both levels where support has come in in the past.
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.