Updating the S&P 500 (SPY) weekly chart inverted H&S situation
What started out in December as a sort of ‘man stares at chart’ joke (weeks before it even activated)…
…persists to this day but is now getting a test.
Pass the test (with recently over-bullish sentiment fixed) and I’ll cover my short and get longer. Fail the test and I’ll press my short (but default to cash) and hope for the next leg of the bear market, which I’d prefer to get over with sooner rather than later. I like resolution, not interminable chop, grind and whipsaw.
As to the weekly chart of SPY, the inverted Head & Shoulders pattern, with its severe down-sloping neckline that doubles as a broken trendline, is intact to the improbable target noted in the post linked above to test the previous bull market’s highs. RSI and MACD are still in the green but RSI has little room before flipping negative and MACD has barely gotten positive. It’s a key juncture in this market, wouldn’t you say?
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