SPY charting perfect "Sell in May and go away!"
Updated
SPY 10 day RSI is trapped in a rising wedge and absent some massive injection of capital from somewhere (May rate cuts?), we will break the wedge right in line with the old saying, "Sell in May and Go away!"
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I'm not sure why the date doesn't show on the line but it is May 21, 2024.Note
Couple other times SPY 10 day RSI was in a rising wedge.... First one broke Sept 2018....Note
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Second one here from Jan '20...Note
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Note the rising wedge is a very specific momentum pattern. It is not like a channel or a steady rise with dips. The pictures above are the only times in the last 10 years where you can see a very clear rising wedge on the 10day RSI.Note
Also note: A wedge never makes it all the way to the peak. We will likely crash through sometime after the end of the first 5th of the year (Ides of March)...If you think yearly fifth are unimportant look up the date of Black Monday. Oct 19th, 1987. Exactly the last day of the 4th fifth of the year.
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See, rising wedges aren't everywhere. No wedges anywhere in 2021 and 2022. All of 2021 was a channel.Note
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Also Yield Curve inversion puts this happening at the beginning of May!Note
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