Sell-off continues in the market this week with even more decline today. Concerning for bulls? Yes. But it was concerning for the bears in late-October of this year.
So. instead of getting swept away by fear or emotion, let’s see what the charts has to say about the action we are seeing.
PRIMARY UPTREND
SPY Daily-Chart 2009 – Today
- We are now back at the primary-term uptrend support level (see arrows)
- This is the level buyers would need to see immediate bounce before the bears completely take over
- Technically speaking, this still is the vicinity of potential higher-low in the intermediate-term (meaning, if we bounce from here, it could still served as a higher-low)
COMPARISON
SPY Daily-Chart 2011
SPY Daily-Chart Today
- Back in late-2011, “Last Level of Fib.” was the important level to watch
- Today, we are right on the “Last Level of Fib.” which is an important level to watch
- Last few months, price-action does look concerning (bearish) and looks heavy (the way it fell), meaning, sentiment is pretty bearish as of today
- Psychologically speaking, the market will test the limits of the bulls and bears to its most extreme level before it makes its decision of the direction — in early November (just few months ago), it looks like the market was ready to thrive back up; but today, it looks like the market is ready to crash = “extreme levels”
- Next 3-5 trading days will be very important as we are trading at a extreme pivotal level
2 thoughts on “Bullish or Bearish: SPY Chart Facts”
Glad to see you’re still at it bro…You see another big drop in $AAPL? Similar set up with a weekly head & shoulders neckline break and close. Everyone talking about the 92 level but that’s too easy I’m wondering if she’s headed for another down fall. (all speculation of course just wondering what you think kay)
Dorahc22 https://www.youtube.com/watch?v=QcOHRbdOJHs video I just published