After this amazing rally, things are starting to turn. As you can see in the 1-hour chart:
Given the economic data being released, I think this bear rally has lost its steam. There might be one final push to fill the gap at $287, but even that sounds difficult at this point. I expect $258 to be tested again soon (long-term support line, highlighted in blue).
What do you think?
- there is an RSI divergence, where SPY was making new highs while the RSI indicator was making lower highs;
- the volume level has been decreasing consistently over the past weeks;
- SPY's price has been facing major support around the 50% fib retracement level ($278.60);
- MACD is approaching 0 and potentially turning negative.
Given the economic data being released, I think this bear rally has lost its steam. There might be one final push to fill the gap at $287, but even that sounds difficult at this point. I expect $258 to be tested again soon (long-term support line, highlighted in blue).
What do you think?
