I expect the S&P 500 to decline in price based on the technical indicators and explanations in this chart. I welcome any comments and feedback.
A new down trend is expected based on the v-reversal pattern. There is support at 409 which is a 28% drop from the current price. That, coupled with light volume, indicate price for the SPY should decline. Also, if you look at the long term trendline of the S&P 500 (far left), that trend line is too steep and unsustainable. Interestingly, there is also a long term decline in volume since 2009. Currently, RSI is not over 70 so the market could push slightly higher but a new up trend is not expected.
A new down trend is expected based on the v-reversal pattern. There is support at 409 which is a 28% drop from the current price. That, coupled with light volume, indicate price for the SPY should decline. Also, if you look at the long term trendline of the S&P 500 (far left), that trend line is too steep and unsustainable. Interestingly, there is also a long term decline in volume since 2009. Currently, RSI is not over 70 so the market could push slightly higher but a new up trend is not expected.
ملاحظة
Correction: The pattern in April is not a Measured Move with a 35% price drop. It's a 6% decline in price and is a Bullish Falling Wedge continuation pattern.
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