DONT FOMO INTO LONGS JUST YET
We are all looking at the same chart and thinking the same thing. SPY COULD have a serious bounce on the 200ma with a POSSIBLE bullish divergence on MACD and RSI. Many have already begun to FOMO into a possible year end rally as we have been rallying hard the past few days. This year is also a midterm election year (midterm election years usually have a rally beginning election time into the middle of the following year). However, this years year end rally is still not confirmed and going bullish so early would be disrespectful to the insane bear market we are having. Expect a retest of the 200ma in the coming weeks with the price coming back down to ATLEAST between 265 to 260, if not lower. If it holds, there is a definite possibility we could be testing 400 at the end of the year to beginning of 2023. However, for this upcoming month I am expecting us to be range bound. There are so many big earnings with banks reporting in the third week and big tech reporting in the last week of the month. Expect for us to have a better direction beginning of November.
Also, do not be surprised if we do not bounce at the 200ma. This bear market is no joke. If earnings are bad and we break down, be ready for a possible 320. Also note Credit Sussie CEO will deliver their turnaround strategy on OCT 27, aligning perfectly with with the end of big tech and bank earnings. How the market reacts to their strategy will also weigh into the direction the market will take to close the year.
Till the breakout in either direction is confirmed, be smart and play the range that will form.
Also, do not be surprised if we do not bounce at the 200ma. This bear market is no joke. If earnings are bad and we break down, be ready for a possible 320. Also note Credit Sussie CEO will deliver their turnaround strategy on OCT 27, aligning perfectly with with the end of big tech and bank earnings. How the market reacts to their strategy will also weigh into the direction the market will take to close the year.
Till the breakout in either direction is confirmed, be smart and play the range that will form.
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.