Wk07: Market Forecast

16 Feb

In the week ahead look for these news announcements to act as potential market movers
On a daily chart of the SPY we can clearly see the down channel that we are in. The hammer break below the channel could be classified as the final flag lower signaling a reversal pattern, and as talked about in the market recap, there is potential for a breakout as we sit at this downtrend line.

The horizontal overhead resistance is strong and not far off. If a breakout does occur it would make sense that it would be a swift large body candle, however a higher lower to follow would allow for reentry if the anticipatory breakout trade is not your style. For those thinking short, a safe stop would be above the prior swing high above that horizontal resistance.

Remember to keep things simple, ask yourself 2 questions when at an inflection point and deciding which way to play a trade…
1. When will the bears know they’re wrong if I go short?
2. When will the bull know they’re wrong if I go long?

No comments yet

Leave a Reply