SPY Uptrend is Broken What Can Happen Next

SPY broke its short-term uptrend on Friday with some decent volume. With a break in that, the uptrend is broken and the downtrend from July continues. What seems to be forming now is support around 442.75, which level caught the sell of on Friday and the other sells offs last week. This support is the pull horiztonal line. WIth the downtrend contininung we see a descrending triangle pattern happening. This is a bearish pattern which when the bottom breaks causes further downside. This break would test the August lows, and potentiall set up another triangle. Till we see a break of some support, expect more chop.

Bear here – I have control of the market so this is my opinion of where we go. We chop and drop back to August lows and test them before heading into earnings season. Then we will reexamine where we go once we get there.

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