SPY Potential H&S Formation Update
Despite all the upside since Dec 24 lows SPY might be forming an H&S formation on monthly chart. Here are my observation as to why this migh be the case
Left Shoulder: January 2018 high formed a left shoulder. January peak failed and stopped right at the SPY uptrend (in this case illustrated by 5 EMA.
Head: After the Left shoulder formation market formed new high but ultimately failed and breaking the SPY uptrend and forming a head of the formation.
Right Shoulder: This brings us to the current formation of the right shoulder. After making a low on December 24 (~248 which if the pattern is true is now a neckline) SPY is rapidly approaching the resistance of ~$268. (Also overhead is a 5 EMA of 270).
If the pattern is correct SPY will fail at the resistance and goes back to the neckline of 248.
Once neckline is broken the expected move 14% (shown by the yellow line which is measured as distance from head to the neckline)
Feedback and comments are welcome.
Let's see what happens in the coming month.
Left Shoulder: January 2018 high formed a left shoulder. January peak failed and stopped right at the SPY uptrend (in this case illustrated by 5 EMA.
Head: After the Left shoulder formation market formed new high but ultimately failed and breaking the SPY uptrend and forming a head of the formation.
Right Shoulder: This brings us to the current formation of the right shoulder. After making a low on December 24 (~248 which if the pattern is true is now a neckline) SPY is rapidly approaching the resistance of ~$268. (Also overhead is a 5 EMA of 270).
If the pattern is correct SPY will fail at the resistance and goes back to the neckline of 248.
Once neckline is broken the expected move 14% (shown by the yellow line which is measured as distance from head to the neckline)
Feedback and comments are welcome.
Let's see what happens in the coming month.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.