This is What Legends R Made Of! Epic Analysis! S&P500 (SPY)
Hi friends! Welcome to this update analysis on the S&P 500, via the SPY ETF! Let's get right to it! Looking at the daily chart, you can see that the bears have delt a critical blow to this market, closing below the black uptrend channel, and the 200 EMA (in purple.) If you recall from my last post, I said "based on the technical indications, I think there is a higher probability that the market will break down from here, bringing a long overdue correction to the stock market. I realize that this is a bold statement, considering the power and incredible duration of this uptrend channel, which we are still inside of. However, the technical data suggests that a breakdown is likely upon us."
And just like that, the very next session produces the first breakdown close below the channel. Unbelievable! Technical analysis is the greatest tool of investing, by far! This channel originated in February of 2016. To be able to pinpoint the time that it would break down, is an extremely valuable gift indeed.
Now that we've closed below the 200 EMA (in purple) and the bottom of the uptrend channel, the path is clear for some major destruction to occur. As I said in my last post, I believe that we are in the process of creating a new downtrend channel (in pink.) With that said, the selling should continue, but may find support at the bottom of the pink channel. The general target area is around 240.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! I'm outta here!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
And just like that, the very next session produces the first breakdown close below the channel. Unbelievable! Technical analysis is the greatest tool of investing, by far! This channel originated in February of 2016. To be able to pinpoint the time that it would break down, is an extremely valuable gift indeed.
Now that we've closed below the 200 EMA (in purple) and the bottom of the uptrend channel, the path is clear for some major destruction to occur. As I said in my last post, I believe that we are in the process of creating a new downtrend channel (in pink.) With that said, the selling should continue, but may find support at the bottom of the pink channel. The general target area is around 240.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! I'm outta here!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
