Looks like SPY is ready to explode. With all this momentum built up, it will go up like a rocket. QQQ closed its gap today. Surely, there must be a number SPY is aiming for. 300? Maybe.
הערה
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These people are no fun!
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294 was a tough spot yesterday on the slide down. Lots of buyers. Won and tested without much of a fight overnight.
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3 waves up, 2 waves down. Ready for gap up tomorrow?
I am new to all of this but am almost 100% sure that a rising wedge indicates a decrease is imminent - same as a falling wedge indicates an increase
frodo75
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@milesvmedeiros, If you are new to this, I would give you a strong advise. There are no such hard and fast rules though a lot has been written to make it appear like the direction is a given. Wedges can break on any side. Plenty of examples from last 2 months on all time frames. Wait for the direction of the breakout (for head fakes or incorrect trendlines) before jumping in it with tight stops. Usually, the breakout is fast and furious and is very exciting after a humdrum chop that precedes it. Good luck!
Hesham1
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@milesvmedeiros, be careful because some are also seeing an ascending triangle, and were in the midst one one of the most epic bull-bear battles that could break either direction. The longer duration this consolidation drags on, the more bullish the setup becomes because of positioning. There is simply too much cash on the sidelines not participating in the market yet. When too many people are bearish as we see today, it means there are not enough sellers and the bearsare getting frustrated so they continue to try to talk down the market without success. This has been proven for several weeks. You get more sellers when everyone becomes too euphoric. It seems backwards but it holds true every time.
I'll also note as I have regularly here, that every dip is being bought. Every single one. That is a function of how much cash there truly is on the sidelines. Positioning will be key here. In time we will have more inflows into the market which will get the bulls offsides, then we can see a correction. But heck, that may not be until Q2 earnings season (July) at this pace. Who knows.
lifeat130bpm
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@Hesham1, I wouldn't say the Fed fueled rally is people on the sidelines. Daytraders can't move markets.
Hesham1
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@lifeat130bpm, there is an enormous amount of cash that has still not been put to work in the market yet. its not just retail investors. The Fed has just started with only a fraction of its buying of junk bonds as well. Its not a great setup for a short.