The Long Investor

$SPY TOP 20

Added 2023-01-08 19:57:59 +0000 UTC

$SPY has been trading in a bear flag now and although Wave 2 is longer than we expected, the macro case has not changed. It is vitally important to take a step back and not focus on the 1hr, 2hr or 4hr chart...I rarely look at these because you will miss the overall trend.

Bear flags are not bullish, it is likely the market preparing for an announcement. It is also smart money getting out before a drop, which is why you may see some excessive movement upwards and people fomo in thinking this is a reversal.

This is not how reversals work....reversals are likely to happen the opposite way, when capitulation happens and there has been excessive selling over a short period of time...this has not happened yet with the SPY.

What is next is Subwave 3 of 3 when Wave 2 is complete. This is the most aggressive move on any chart and I am not surprised to see it delayed.

Again, none of this concerns me and my investing and for long term investors, all I want to see is the market capitulating and when the market is in utter despair and everyone has given up and sold out, I will gladly buy their shares, this is all part of human behaviour and constantly repeats itself.

Take your time, zoom out, look at the big picture and focus on price targets, not swings.