Market Looks To Breakout Of Descending Channel
Updated
SPY broke out of its downtrend a month ago which commenced a period of appreciation in price. However, the rise was short-lived and the market has found itself in a downwards consolidation - in the form of a descending channel - once more in the past two weeks. Now, it looks to breakout of the channel and resume the uptrend but faces stern resistance - this is a level that price has thrice rejected in the past two weeks and RSI remains dismally low. Look to enter long if the breakout is successful (if price goes past $450) and short if there is yet another rejections. Either way, we should see some significant movement here.
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Significant movement, just as expected, in the form of a big bearish candle. There is still more downside to come - look to hold until we hit some form of support (likely around $436).
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