With the market closed on Friday we were left with watching the crypto markets take a dip in a less than dramatic fashion. Only left to wonder what the the stock market would have done! For a while I've been beating the drum that Bitcoin is an excellent leading indicator of the markets so it's not farfetched to think that the stock market would have dropped a bit today. I'll speak more on how Bitcoin is a leading indicator on a separate post.
Here we have the
SPY
. What follows is some basic Elliot wave and classical charting to assess the next market move.
Image 1: Here I want to know whether both impulses up are equal. We can see using the trend based fib extension that the SPY has yet to tap the 0.88 Fibonacci suggesting potential of further upside.
Image 2: On image two, using a small timeframe, 15 min, we see a simple rising wedge formation. Normally seen when trends are stretching out and are nearing their end. I included RSI to show a normal bearish divergence.
Image 3: Putting it all together, the SPY appears to be completing a Zig Zag (5-3-5) correction. If you look closer at the ending diagonal there could be some more price action to the upside before a pull back.
From my perspective the overall trend remains down as this was a corrective move to the upside. More to come in future posts from a high timeframe perspective!
Here we have the
SPY
. What follows is some basic Elliot wave and classical charting to assess the next market move. Image 1: Here I want to know whether both impulses up are equal. We can see using the trend based fib extension that the SPY has yet to tap the 0.88 Fibonacci suggesting potential of further upside.
Image 2: On image two, using a small timeframe, 15 min, we see a simple rising wedge formation. Normally seen when trends are stretching out and are nearing their end. I included RSI to show a normal bearish divergence.
Image 3: Putting it all together, the SPY appears to be completing a Zig Zag (5-3-5) correction. If you look closer at the ending diagonal there could be some more price action to the upside before a pull back.
From my perspective the overall trend remains down as this was a corrective move to the upside. More to come in future posts from a high timeframe perspective!