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SPY TECHNICALS
SPY Technicals: Big Picture ?
October 19 ( From Stockcharts, TradingView )
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The Situation
We just start to realize how deep and violent the correction was on the US
equity market lately. From the peak price on SPY ETF reached on May 20 2015
at 213.78 to the low made on August 24 at 182.40, for a move of 14.68%.
That was the first serious real correction since October 2014...
In fact, when we broke a Rising Wedge Pattern on August 21 2015, game was
over on SPY on a short term basis and then reached then the panic selling level
on August 24 at 182.40. ( See Charts Below - Red Trendline )
We did on September 29 a technical test of the Daily Low of August 25 (186.93 ) and rebouded violently.
It was a double bottom and the market rallied and for the first time since August 24, and it did finally on a stronger volume.
On October 2, SPY ETF did close above the 20 DMA zone ( Day Moving Average - then at 194.62 )
( See First Chart Below - Yellow line ).
On October 8, SPY ETF did close above the 50 DMA zone ( Day Moving Average - then at 199.84 ), another strong technical behavior. ( See First Chart Below - Red line ).
On October 16, we did finally closed above the high of September 17; we had that day a Shooting Star Pattern on SPY ETF that bring a Short Term Reversal in Trend. That was quite a statement from Mr Market.
But the most interesting technical factors is that we are back near a strong Resistance Zone: (Ellipse-Charts Below)
1) Old Support Trendline from a Rising Wedge (from December 16 2014) that we broke on August 21.
( See Charts Below - Red Trendline )
2) Old Support Trendline (from March 26 2015) that we broke on August 20.
( See Charts Below - Bottom Blue Trendline )
3) Resistance from an Uptrend Channel that started on October 5
( See Charts Below - Small Uptrend Channel )
4) Old Resistance Trendline froma Downtrend Channel (from July 20 2015)
( See Charts Below - Middle Blue Trendline )
5) 200 DMA ( Day Moving Average ) now at 206.04
( See First Chart Below - Green line ).
If Mr Market is able to go through all those resistances, then we may have another quite Bullish Upwave and reach the High made on July 20 2015 at 213.18.
SPY Technicals: Big Picture ? $SPY #Trading #Emini #investing #SP500
SPY ETF ( Daily Candles )
Volume ( Bottom Panel - Blue Area )
Financialiceberg.com
SPY ETF ( Daily Candles )
Volume ( Bottom Panel - Blue Area )
Financialiceberg.com