SPY Head and Shoulders Looking to return to 390s
Yesterday was a wild one and gave me some pause, there was so much bullishness towards the end of the day we actually ended up having a false breakout to the upside that stalled right at the gap resistance around 420.
In retrospect it is clear that the market was really giddy about something, probably the announcement about student loan forgiveness combined with some analysts touting a 50 pt rate hike instead of 75.
This caused the right shoulder to prop itself up a bit which threw the pattern off and honestly made it a tough read in advance.
This morning we tried to test the gap a 2nd time and ended up rejecting. From there the price collapsed down to the neckline giving us this pattern. Upon seeing that we ended up sliding even further resulting in a really rough day for the market.
Overall I think we will trend down to the bottom of the wedge I have drawn in blue around the mid 390s, there is some good support at these levels so I would be taking a good look at the chart around there. We sold off so much today that we could always try to retest the 410 level next week but if we do I see us rejecting and heading down.
In retrospect it is clear that the market was really giddy about something, probably the announcement about student loan forgiveness combined with some analysts touting a 50 pt rate hike instead of 75.
This caused the right shoulder to prop itself up a bit which threw the pattern off and honestly made it a tough read in advance.
This morning we tried to test the gap a 2nd time and ended up rejecting. From there the price collapsed down to the neckline giving us this pattern. Upon seeing that we ended up sliding even further resulting in a really rough day for the market.
Overall I think we will trend down to the bottom of the wedge I have drawn in blue around the mid 390s, there is some good support at these levels so I would be taking a good look at the chart around there. We sold off so much today that we could always try to retest the 410 level next week but if we do I see us rejecting and heading down.
Feragatname
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