Is being squeezed inside a Triangle between SMAs - Who will win?
$SPY bulls managed to push the price to close above its 200 SMA line again. However, the price did close below the 208$ structure zone (now resistance) and depending on the opening, I see two scenarios here:
1. Bearish open - A close below the 200 SMA line could a breakdown of the Triangle pattern and a massive sell off in $SPY.
2. Bullish open - The price will gap above 208$ and push higher towards the major resistance near 210$, there it'll meet two daily SMA lines along with a strong structure resistance.
$SPY could be squeezed between the 3 SMA lines, inside the triangle till next FOMC meeting on September. The Triangle's breakdown/breakout could be the signal for future price direction.
This analysis is part of this week's Weekly Markets Analysis newsletters - goo.gl/AGTYS1
You can subscribe to my weekly newsletters here: goo.gl/HXjCPV
1. Bearish open - A close below the 200 SMA line could a breakdown of the Triangle pattern and a massive sell off in $SPY.
2. Bullish open - The price will gap above 208$ and push higher towards the major resistance near 210$, there it'll meet two daily SMA lines along with a strong structure resistance.
$SPY could be squeezed between the 3 SMA lines, inside the triangle till next FOMC meeting on September. The Triangle's breakdown/breakout could be the signal for future price direction.
This analysis is part of this week's Weekly Markets Analysis newsletters - goo.gl/AGTYS1
You can subscribe to my weekly newsletters here: goo.gl/HXjCPV
