SPY| Bearish PA| Weekly S/R| Bearish Divergence|.618 Fibonacci
Evening Traders,
Today’s analysis – SPY – possible blow of top with further downside probable, following technical points to consider.
- Bearish PA (swing high)
- Valid bearish divergence
- Weekly S/R support
- .618 Confluence (200 DMA&DEMA)
- Increasing volume
SPY’s immediate price action at swing high is bearish; a large wick on a weekly candle usually marks a temporary top, this allows us to have a bearish bias on the market.
Weekly S/R is the next logical support; price action is likely to have a reaction. Breaking this level will be very bearish. Price will then have a higher probability of testing the .618 Fibonacci in confluence with the 200 DMA&DEMA.
Spy currently has a bearish divergence on the weekly; this is an indication of weakness in the market, thus further downside likely.
There is also increasing volume after absorption, indicating sellers are stepping in pushing current volume node above average.
Overall, in my opinion, the SPY is likely to correct further with weekly S/R immediate target. Any short positions are to be risk defined. Price action is to be used upon management/ discretion of trade.
Hope this analysis helps!
Thank you for following my work!
And remember,
“Win, loss whatever emerges in the short-term, place and manage your next trades untouched, unattached... always keeping your eyes on the long-term picture.” ― Yvan Byeajee
Today’s analysis – SPY – possible blow of top with further downside probable, following technical points to consider.
- Bearish PA (swing high)
- Valid bearish divergence
- Weekly S/R support
- .618 Confluence (200 DMA&DEMA)
- Increasing volume
SPY’s immediate price action at swing high is bearish; a large wick on a weekly candle usually marks a temporary top, this allows us to have a bearish bias on the market.
Weekly S/R is the next logical support; price action is likely to have a reaction. Breaking this level will be very bearish. Price will then have a higher probability of testing the .618 Fibonacci in confluence with the 200 DMA&DEMA.
Spy currently has a bearish divergence on the weekly; this is an indication of weakness in the market, thus further downside likely.
There is also increasing volume after absorption, indicating sellers are stepping in pushing current volume node above average.
Overall, in my opinion, the SPY is likely to correct further with weekly S/R immediate target. Any short positions are to be risk defined. Price action is to be used upon management/ discretion of trade.
Hope this analysis helps!
Thank you for following my work!
And remember,
“Win, loss whatever emerges in the short-term, place and manage your next trades untouched, unattached... always keeping your eyes on the long-term picture.” ― Yvan Byeajee
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