SPY & SPX Price Analysis
Overview
On the 17th, both SPY and SPX, broke out of their ascending triangle patterns that had been accumulating for the past few weeks. We can see it has broken out bearish and is likely to continue bullish. There has been no divergence -both visible and hidden; following the breakout, my charts are indicating a continuation. Opened bearish today, but it is most definitely a pullback.
What's my proof?
Volatility is expanding past 20% threshold on both charts, and Stochastic going down with it. Additionally, ClusterAlgo is giving off a bearish signal - although we are yet to see sell signal for double confirmation. These signals with the combined knowledge of breakouts derived from chart patterns such as the triangles we have just seen has me confident that this information is accurate.
Effects of this breakout
If you have any pre-existing knowledge on markets, you likely know that these breakouts are significant because they will greatly reflect on the market as many stocks follow them. As for cryptocurrencies, I believe that we will likely see a turn to the downside as well. While crypto does not follow SPY and the S&P as closely, with the market likely maintaining a bearish trend for next short while, we can expect to see crypto head in a bearish direction - likely following BTC. As for Forex and Futures, that is not my expertise, nor am I nearly experienced enough to discuss it.
In all, I believe that in the short-term time frame, we will see a continuation to the downside. I'd also like to mention that I am not extremely experienced in markets or technical analysis. This is just my opinion as an amateur trader - if you disagree or feel I missed important information, please leave a comment; I'd love to hear some other perspectives on the recent price action.
On the 17th, both SPY and SPX, broke out of their ascending triangle patterns that had been accumulating for the past few weeks. We can see it has broken out bearish and is likely to continue bullish. There has been no divergence -both visible and hidden; following the breakout, my charts are indicating a continuation. Opened bearish today, but it is most definitely a pullback.
What's my proof?
Volatility is expanding past 20% threshold on both charts, and Stochastic going down with it. Additionally, ClusterAlgo is giving off a bearish signal - although we are yet to see sell signal for double confirmation. These signals with the combined knowledge of breakouts derived from chart patterns such as the triangles we have just seen has me confident that this information is accurate.
Effects of this breakout
If you have any pre-existing knowledge on markets, you likely know that these breakouts are significant because they will greatly reflect on the market as many stocks follow them. As for cryptocurrencies, I believe that we will likely see a turn to the downside as well. While crypto does not follow SPY and the S&P as closely, with the market likely maintaining a bearish trend for next short while, we can expect to see crypto head in a bearish direction - likely following BTC. As for Forex and Futures, that is not my expertise, nor am I nearly experienced enough to discuss it.
In all, I believe that in the short-term time frame, we will see a continuation to the downside. I'd also like to mention that I am not extremely experienced in markets or technical analysis. This is just my opinion as an amateur trader - if you disagree or feel I missed important information, please leave a comment; I'd love to hear some other perspectives on the recent price action.
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