$SPY $SPX 5 Reasons to be Bullish vs 5 Reasons to be Bearish
BULL
1. SPY had an incredible bounce yesterday printing a bullish hammer at the $390 level which is a huge area of support. Inverse Head & Shoulder is still in play.
2. The RSI has created a bullish divergence (might be temporary - see bearish view).
3. MACD has started curling up after the big corrective decline.
4. Stoch RSI is and has been negative (oversold) for days.
5. The chance of 75bps (interest rate hike) announced at the next meeting is already mostly priced in as the FED gave a hawkish speech at Jackson Hole.
BEAR
1. RSI has not reached oversold territory on the daily (a double bottom could resolve that).
2. The weekly RSI was over-bought and has already began making its way down.
3. POWELL is actively trying to bring the markets lower.
4. Many gaps to the downside.
5. 50MA/100MA are squeezing on the daily - indicating volatility incoming, which also could be a bullish move.
Overall - bullish until proven support is broken.
1. SPY had an incredible bounce yesterday printing a bullish hammer at the $390 level which is a huge area of support. Inverse Head & Shoulder is still in play.
2. The RSI has created a bullish divergence (might be temporary - see bearish view).
3. MACD has started curling up after the big corrective decline.
4. Stoch RSI is and has been negative (oversold) for days.
5. The chance of 75bps (interest rate hike) announced at the next meeting is already mostly priced in as the FED gave a hawkish speech at Jackson Hole.
BEAR
1. RSI has not reached oversold territory on the daily (a double bottom could resolve that).
2. The weekly RSI was over-bought and has already began making its way down.
3. POWELL is actively trying to bring the markets lower.
4. Many gaps to the downside.
5. 50MA/100MA are squeezing on the daily - indicating volatility incoming, which also could be a bullish move.
Overall - bullish until proven support is broken.