$SPY TOP 20 UPDATE
Added 2023-03-30 11:30:47 +0000 UTCIn my last update, I spoke about the ascending wedge that the $SPY was in and it broke down from this, came down to the 200 Day MA and the channel and found support, it is now bouncing and although on the outside of that small wedge, the price action in PM today is showing a move up. It is still very much in a bear flag now.
We spoke about the possibility of a H&S pattern forming too, this looks to coincide at the top where both the blue resistance line is and entry back into the larger ascending wedge (bear formation).
So it looks like it is aiming for that confluence point now, very very big test here!
RSI on the 1hr is at 69 and on the daily it at 55.
It's make or break time coming up I think, we'll know for sure what direction this will go in, will it break out above the blue resistance lines and the large wedge and turn bullish or will it reject and come down...the bottom of the head and shoulders pattern conveniently end at where I have Wave 3....so a lot is on the table here.
My personal opinion:
It appears bizarre to me that we are even in a potential bull case scenario considering only last week we were facing a financial collapse and these issues are apparently gone and we will not hear about them again, it simply does not work like that and inflation appears to not be an issue now because the financial issues have gone away.....they have both not gone away.
I also won't be entertaining any short term bounces as an opportunity to chase, I would prefer to buy individual stocks that have clear set ups.
I do like the $SPY as a long term add but I won't be buying unless it is clearly in the bull case or in our buy zone.
