Always consider hidden risks
SPY ETF Technicals: Major Support Trendline in Jeopardy ?
February 11 ( From Tradeview )
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We have been in one of the most Bullish Stock Market in history
since 2009. The Mighty SP500 Index (SPY ETF) from a low in
March 2009 of 67.10 to the high ever on May 2015 at 213.78 rose
by a factor of 3.2 spurred by low interest rates and strong buybacks
from US corporations. Those factors are fading quickly...
In fact, when we broke a Rising Wedge Pattern on August 21 2015,
over on SPY ETF on a short term basis and then reached
then the panic selling level
on August 24 at 182.40.
( See 1rst Chart Below - Bottom Grey Trendline )
We almost reached on September 29 the Daily Low of August 24 and
It was a double bottom and the market rallied
and for the first time since August 24, and it did finally on a stronger
Since the end of December 2015, market internals continue
to deteriorate tremendously.
And now, we are testing the Low price on August 24 at 182.40. ( See 1rst Chart Below - Bottom Grey line - Ellipse ).
But the most interesting technical factor is that we are near testing again the Daily Major Support Trendline that started back on October 15 2014 and near of a break down. ( See 1rst Chart Below - Grey Trendline - Ellipse )
And looking at a bigger picture on a Monthly Chart ( See second chart below ), we can see that if we break this support trendline mentioned above, then the next major one that started since March 2009 is quite far below
of today s level. ( See second chart below, Blue Trendline )
"Chance favors the prepared mind."
SPY ETF Technicals: Major Support Trendline in Jeopardy ? $SPY, $SPX #Trading #Investing #SP500 #dxy
Monthly Chart - Candles