I think its safe to say many of us have been surprised by the strenghth of the market these past few months. Global economic uncertainty is at all time highs, but the market doesnt care. Thats one reason I prefer to play the trends as opposed to making predictions. All too often I see furus on twitter making fools of themselves calling crashes every other day when its so obvious buyers (big buyers)have been accumulation for quite awhile. Market behavior is something you can only learn with screen time and lord knows I've spent enough time to know that the market character changed some months back. That does not mean it can't change again in a heart beat. I'll be watching for the shift.
On to my analysis....Whether or not we get a continuation of the bullflag -and resulting breakout will entirely depend on whether we can hold the bf channel bottom at 403. Keep in mind this is the 4th test of that channel bottom and each test weakens that support. Failure should bring us to the untested demand zone at 398-400 which also an inflection point because it coincides with the rising channel from Oct lows + the 50 ma is rising into that are and if spy is indeed in a bull market, the 50ma will act as support.
Let me know what you think. I always appreciate feedback. Cheers.
On to my analysis....Whether or not we get a continuation of the bullflag -and resulting breakout will entirely depend on whether we can hold the bf channel bottom at 403. Keep in mind this is the 4th test of that channel bottom and each test weakens that support. Failure should bring us to the untested demand zone at 398-400 which also an inflection point because it coincides with the rising channel from Oct lows + the 50 ma is rising into that are and if spy is indeed in a bull market, the 50ma will act as support.
Let me know what you think. I always appreciate feedback. Cheers.