Hello, traders!
SPY, the ETF that tracks the SPX performance has managed to remarkably recover from the lows of spring this year as the COVID -19 virus threat became real.
The ETF has drawn up a very determined short-term uptrend, supported by the FED's interventions in the CEF, ETF and Bond markets.
Currently the ETF has been trading in a range since September and has managed to form two tops circa the 360 (figure) level. My overall expectations are for the instrument to test the trendline support and from there to:
1. Bounce back inside the uptrend and to continue again towards 360 or;
2. A breakout towards the 320 zone to form the neck of the double top;
2.1. Strong bounce up again for the price to return back inside the trend or;
2.2. Push below the neckline;
3. Test the neckline and successfully and start to execute the double top
3.1. Directly drop from the breach if the selling accelerates.
First target and a possible support will be the 200SMA, which slope will probably curve around the 308-310 level.
Overall target of the formation is below the 50 Fibo zone circa 280 level.
MACD's two MA's are also crossing, triggering a sell signal. The volume histogram is also fading, showing deacceleration in buying which may be an additional trigger for selling pressure.
SPY, the ETF that tracks the SPX performance has managed to remarkably recover from the lows of spring this year as the COVID -19 virus threat became real.
The ETF has drawn up a very determined short-term uptrend, supported by the FED's interventions in the CEF, ETF and Bond markets.
Currently the ETF has been trading in a range since September and has managed to form two tops circa the 360 (figure) level. My overall expectations are for the instrument to test the trendline support and from there to:
1. Bounce back inside the uptrend and to continue again towards 360 or;
2. A breakout towards the 320 zone to form the neck of the double top;
2.1. Strong bounce up again for the price to return back inside the trend or;
2.2. Push below the neckline;
3. Test the neckline and successfully and start to execute the double top
3.1. Directly drop from the breach if the selling accelerates.
First target and a possible support will be the 200SMA, which slope will probably curve around the 308-310 level.
Overall target of the formation is below the 50 Fibo zone circa 280 level.
MACD's two MA's are also crossing, triggering a sell signal. The volume histogram is also fading, showing deacceleration in buying which may be an additional trigger for selling pressure.
