Correction in SPY: 3 reasons for, 2 reasons against
Amazing that after 1 year
SPY
closed yesterday at the exact POC-point of control.
I expect a correction at this level. 3 Reasons why and 2 reason not to.
1. Close to the lower channel line.
2. I can count 5 waves down even on RSI.
3. We reached point of control level so I expect a bit of a fight from the bulls here.
If it smashes this level, expect big drop.
The reason against this
1. I don't see any bullish divergence in indicators.
2. Impulse system is red both on daily and weekly charts
My conclusion:
I am expecting a small correction but not a big one. Don't go and morgage the farm for calls on this though.
Are you a bull or a bear here? Comment below
Legal Disclaimer: The information presented in this analysis is solely for informational and educational purpose and does not serve as financial advice.
SPY
closed yesterday at the exact POC-point of control. I expect a correction at this level. 3 Reasons why and 2 reason not to.
1. Close to the lower channel line.
2. I can count 5 waves down even on RSI.
3. We reached point of control level so I expect a bit of a fight from the bulls here.
If it smashes this level, expect big drop.
The reason against this
1. I don't see any bullish divergence in indicators.
2. Impulse system is red both on daily and weekly charts
My conclusion:
I am expecting a small correction but not a big one. Don't go and morgage the farm for calls on this though.
Are you a bull or a bear here? Comment below
Legal Disclaimer: The information presented in this analysis is solely for informational and educational purpose and does not serve as financial advice.