Triple Bottom + Bull Flag + Bullish Divergence = BRRRRR
With yet the third test of 4180 on increasing bullish divergence on the Chaikin Money Flow indicator, it seems clear the pump has been primed to go higher. This appears to be a bullish consolidation pattern bottoming round 4180 that should resolve to the upside. As in 2020, the S&P 500 went almost nowhere during May until the end of the month - where it broke out. History doesn't repeat itself, but it rhymes.
Why bullish?
1. 3 tests of the 2.6 STDV Bollinger band with a higher CMF each time. That's bullish divergence.
2. VIX has been crushed to 17. The smart money is not expecting a selloff anytime soon.
2. You literally can place a stop loss under the Bollinger bands (5 points down) and enjoy up to a 9-1 Risk/Reward ratio.
Void upon break of 4180.
Targeting the outer fib / max Bollinger Band range around 4230.
Why bullish?
1. 3 tests of the 2.6 STDV Bollinger band with a higher CMF each time. That's bullish divergence.
2. VIX has been crushed to 17. The smart money is not expecting a selloff anytime soon.
2. You literally can place a stop loss under the Bollinger bands (5 points down) and enjoy up to a 9-1 Risk/Reward ratio.
Void upon break of 4180.
Targeting the outer fib / max Bollinger Band range around 4230.
