SPY: FLUSH OR RALLY / MARKET BREADTH / MARKET MAKERS TIMING
Description: In the chart above I have provided a semi-macro analysis of SPY that compares ongoing market rally and past rallies within the range of 420 & 360 Points.
Points:
1. Price Action is fast approaching 420 Resistance that has been indicative of a turn around for past 4 rallies that failed to break the 420 LEVEL.
2. First 2 rallies under the 420 Level showed signs of congruence when it came to market breadth and price action.
3. Last 3 rallies including current one has shown divergence with market breadth along with a distinct pattern of consolidation that is followed by a sudden drop in price action.
4. It is important for price action to have another leg even if current uptrend is continued.
First Price Target: 404.64 Bouncing Support
Second Price Target: 400 Critical Support
Market Breadth:
1. Showing strong signs of divergence with average price action continuing to rise. The Tech Sector is mainly responsible for the upholding of this rally with giants like AAPLE, NVIDIA, AMD, AMAZON, META, & GOOGLE fighting against bearish momentum.
2. For the majority of US INDICES Tech companies like AAPLE, NVIDIA, AMD, AMAZON, META, & GOOGLE represent a large majority of the holdings within many US INDICES. So it is no coincidence for why market breadth may appear weak when only a couple holdings are contributing to rallies meanwhile a large majority of the holdings are in the red.
3. Market Breadth Levels of 4200 have been indicative of volatile declines in price action in the past with an average incoming 10 POINT DECLINE over a day or two.
FULL CHART LINK: www.tradingview.com/chart/UUCv2fGk/
SPY
Points:
1. Price Action is fast approaching 420 Resistance that has been indicative of a turn around for past 4 rallies that failed to break the 420 LEVEL.
2. First 2 rallies under the 420 Level showed signs of congruence when it came to market breadth and price action.
3. Last 3 rallies including current one has shown divergence with market breadth along with a distinct pattern of consolidation that is followed by a sudden drop in price action.
4. It is important for price action to have another leg even if current uptrend is continued.
First Price Target: 404.64 Bouncing Support
Second Price Target: 400 Critical Support
Market Breadth:
1. Showing strong signs of divergence with average price action continuing to rise. The Tech Sector is mainly responsible for the upholding of this rally with giants like AAPLE, NVIDIA, AMD, AMAZON, META, & GOOGLE fighting against bearish momentum.
2. For the majority of US INDICES Tech companies like AAPLE, NVIDIA, AMD, AMAZON, META, & GOOGLE represent a large majority of the holdings within many US INDICES. So it is no coincidence for why market breadth may appear weak when only a couple holdings are contributing to rallies meanwhile a large majority of the holdings are in the red.
3. Market Breadth Levels of 4200 have been indicative of volatile declines in price action in the past with an average incoming 10 POINT DECLINE over a day or two.
FULL CHART LINK: www.tradingview.com/chart/UUCv2fGk/
SPY
