SPY 1-1 Fib Extension Complete, Correction Week
Technicals:
1-1 Fibonnaci extension from May low to Jun high has nearly hit the 435 target zone and is now ready to pullback or at minimum consolidate above the previously broken rising wedge. During the previous Friday close, I noted that on the lower timeframe VIX rose with SPY during the end of day rally.
Concerning bearish megaphone (red) forming, aligning with the 1 fib ext. A move above 435 would be unhealthy and likely not hold for long.
Fundamentals:
Still a liquidity driven market. Bonds flashing signs while moving against consensus. Economic data thus far suggests that T note yields should be at 1.7% or higher. QE was true during the beginning of 2021, so that explanation is not enough. For the energy sector (XLE), OPEC+ talks now delayed indefinitely and $80/bbl will likely be here soon.
1-1 Fibonnaci extension from May low to Jun high has nearly hit the 435 target zone and is now ready to pullback or at minimum consolidate above the previously broken rising wedge. During the previous Friday close, I noted that on the lower timeframe VIX rose with SPY during the end of day rally.
Concerning bearish megaphone (red) forming, aligning with the 1 fib ext. A move above 435 would be unhealthy and likely not hold for long.
Fundamentals:
Still a liquidity driven market. Bonds flashing signs while moving against consensus. Economic data thus far suggests that T note yields should be at 1.7% or higher. QE was true during the beginning of 2021, so that explanation is not enough. For the energy sector (XLE), OPEC+ talks now delayed indefinitely and $80/bbl will likely be here soon.