$SPY TOP 20
Added 2023-04-23 13:28:39 +0000 UTCThis has effectively moved sideways in a tight range since November '22, the price action has still not confirmed its direction, we are still looking at the resistance lines in blue and the yellow trend line from the wedge acting as resistance levels. It is likely that the market needs more information from the current earnings season to determine the state of the economy, the banking crisis has left a sour taste, inflation remains an issue with regard to whether the Fed will continue raising rates and mixed earnings have just not convinced the market yet that the worst is behind us.
So lets look at what we can see. I've mentioned the blue resistance lines and the yellow trend lines, acting as resistance. Lets look at the RSI and MACD: the RSI has shown that it has hit 70 and pulled back slightly, each time this has happened since August there has been a considerable pull back but within the range.
The MACD is showing the same, whenever the blue line crosses the red line, there has been a pull back within the range too. This appears to be happening again....so the question is, will it pull back within the range or pull back to new lows? This is still not clear.
So What Now?
Very important earnings are due this week with a lot of weight and influence on the market, $MSFT, $AMZN, $GOOG $META etc, if we see negative earnings here, it is likely that this will not turn bullish and continue its pull back. Mixed reports, may continue to move this sideways.
