God's Plan

SPY 4 Hour Chart 

The Logic of Moving Averages

• 50 and 225 Moving Average Crosses both Positive and Negative
• Lack of Uptrend 
• Price being Denied by Slower and Faster Moving Averages
• Change in Momentum after two rejections

(1) The 50 crossed through the 225 in a positive way, but then failed after price spend 1 day deliberating and then tanked leading price in a direction below the 50 period moving average and point 1 marks where price did not exceed the green slope shortly after the crossover

(2) In the congestion circle price briefly tapped the 225 blue sloping line and then departed very quickly 

(3) The reaction to much lower prices at 260 ramped price back into 264 which was quickly rejected and then brought us to the base between 256-258, most of the demand was below (3) and led to the generation of the trendline

Terminated

• Trend line was broken and it happened at relatively the same levels as the congestion circle to the left side between 269-272.50

First Rejection

• The 50 and 225 period moving averages coiled together and left the level very quickly, this confirms the power of the downtrend

Second Rejection

• The same scenario is taking place but the difference is that it lacks as much positive momentum and that is why the 50 period green moving average is already on its descent before price entered 266.55-267