This first image is one of the yearly candlestick of the SPY which goes back to 1997. Here is a description of what happened. The market rallied for the five years after the technology bubble of 2000-2002, and then topped out in 2007 and had one negative year, the gigantic plunge in 2008 was contained to one year.
- Each year volume declined making it non-confirmatory
The drawing tool retraces the fibonacci levels from the March 2009 lows at 60 to today's high of 250
The 78.6% mark at $208.73 coincides with many of the orders that were filled in the 2015 and 2016 yearly lows and should be attractive again when mean reversion sets in.
Comparing candlestick chart patterns when price consolidates and then breaks out. The larger view includes a 20 year history of the monthly candlesticks in red and white and the shorter term picture is this year which exhibits congestion that is occurring this week
The 20 year chart of SPY has a declining dotted yellow trendline in which each of the volume bars are respecting the decline very well. The price and volume relationship has been a powerful indicator re: trend changes but in this market there are an infinite amount of possibilities.
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