Always consider hidden risks
SPY ETF Technicals: Resistance Trendlines Ahead?
April 04 2016 ( From Tradeview, Stockcharts )
If you would like to receive our free daily markets updates, please Sign-up
We have been in one of the most Bullish Stock Market in history since 2009. The Mighty SP500 Index (SPY ETF in our case) went from a low in March 2009 of 67.10 to the high ever on May 2015 at 213.78, so rose by a factor of 3.2 spurred by low interest rates and strong buybacks from US corporations.But in fact, since the peak made on May 20 2015 at 213.78 on the SPY ETF, we are into a lower highs and lower lows technical pattern in a multiple down steps...(See 1rst Chart Below - Thick Red Trendline)
And we made almost a double bottom technical pattern (January 20 2016 and February 11 2016 to painfully climb into a Steep Uptrend Channel on Low Volume. (See 1rst Chart Below - Channel) And now, not only we are testing the Fibonacci Retracement zone of .764% at 206.06 (From peak price on May 20 2015 to the Low price on January 20 2016) ( See 1rst Chart Below - Top Blue line - Ellipse ) , but we are also back at the previous August 2015 breakdown trendline (now resistance) that started back on December 16 2014.
(See 1rst Chart Below - Thick Amber Trendline - Ellipse).
Also, we are near another daily resistance trendline that started back since November 3 2015. To keep that lower highs and lower lows technical pattern, Bears need to keep SPY ETF below the December 2 2015 high of 211.00. (See 1rst Chart Below - Thick Grey Trendline). And finally, we have the Major Resistance Trendline that started back since the ultimate peak in price reached on May 20 2015. (See 1rst Chart Below - Thick Red Trendline).
But looking at the big picture (Monthly Candles Chart on SPY ETF) shows us the most interesting technical factor; we are into a lower highs and lower lows technical pattern since May 2015 and now getting near the Resistance Zone on that Monthly Downward Channel... The best set up for Bulls is testing it in a strong Volume environment. The real battle for Bulls is there... (See 2nd Chart Below - Downward Channel)
"Chance favors the prepared mind."
SPY ETF Technicals: Resistance Trendlines Ahead? $SPY, $SPX #Trading #Investing #SP500 #dxy
SP500 (SPY ETF)
Monthly Candles Chart
SP500 (SPY ETF)
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )