SPY: Head & Shoulders top & 2022 Prediction
It looks to me like we have firmly painted a head and shoulders top. This should be the end of the Covid Bubble. We are now going to unwind into a bumpy landing.
I get the feeling May might actually be a decent month considering April has burned off almost all of the gains that we made from the last time Powell spoke.
It seems almost too predictable but that might be exactly why it happens. I think we will continue our decline before Powell speaks and after the rate hike the market will breath another sigh of relief, we will start to climb a bit, but not nearly as high as the last time. Blind bullishness is starting to fade and talks of recession are starting to become more mainstream.
We have danced around this 415-420 mark a couple times and it is seems like a nice support, I think we will bounce off of it once more, it coincides nicely with the rate hike announcement. Inevitably we will be coming back down again, the market cannot support these valuations. I think that once we do crack 415 we will start heading straight down to the most reasonable instance of support, the Pre-Covid peak.
335 represents a 30% decline from the All Time High and is right where we were at the peak pre-covid, it also is where we had quite a few challenges breaking out of during the recovery. I think it will act as a strong support and really one of the only supports once we break 415
Overall I think once 415 is cracked we will really start to move downward, but I do feel we will get some bullishness in May.
Note: We may have some support around 380 which could result in a slight rally to 400-410.
Once the 415 support acts as confirmed resistance we will drop like a rock down towards 335.
This is just artwork.
I get the feeling May might actually be a decent month considering April has burned off almost all of the gains that we made from the last time Powell spoke.
It seems almost too predictable but that might be exactly why it happens. I think we will continue our decline before Powell speaks and after the rate hike the market will breath another sigh of relief, we will start to climb a bit, but not nearly as high as the last time. Blind bullishness is starting to fade and talks of recession are starting to become more mainstream.
We have danced around this 415-420 mark a couple times and it is seems like a nice support, I think we will bounce off of it once more, it coincides nicely with the rate hike announcement. Inevitably we will be coming back down again, the market cannot support these valuations. I think that once we do crack 415 we will start heading straight down to the most reasonable instance of support, the Pre-Covid peak.
335 represents a 30% decline from the All Time High and is right where we were at the peak pre-covid, it also is where we had quite a few challenges breaking out of during the recovery. I think it will act as a strong support and really one of the only supports once we break 415
Overall I think once 415 is cracked we will really start to move downward, but I do feel we will get some bullishness in May.
Note: We may have some support around 380 which could result in a slight rally to 400-410.
Once the 415 support acts as confirmed resistance we will drop like a rock down towards 335.
This is just artwork.
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