Important Levels are Being Tested Everywhere
#bitcoin #spy #dxy #dollar #stocks #stockmarket #crash #blowofftop
Traders,
In yesterday's post, I hinted at the fact that it looks as though SPY's upward trend, irrational as it may seem, will continue, fulfilling my blow-off top thesis. I still believe this to be true. However, along the way up, there will be obvious pullbacks.
We now have what looks to be a completed H&S pattern formed on SPY. Currently, we are testing this neckline support. But we need confirmation to know whether it will be a break or not. Tomorrow we should find out. Until then, I am watching this along with the dollar chart (below) closely.
If the dollar breaks its overhear resistance at approx. 105.6, we'll also have our answer here. This head and shoulders pattern on the SPY should then continue to play out to the downside and our H&S pattern on the dollar chart will become invalidated. Watch both of these indicators closely to find more clues on further price direction in U.S. stocks and crypto.
Until the next update, best on all of your trades!
Stew
P.S. - Also a quick update on BTC’s 4 hr. chart below. Yesterday, I posted that we would break down from this bearish triangle pattern soon. This we did. Now we are on the 26500-26600 support again. If this holds, we should continue back up. But if it breaks, as I stated in yesterday’s post, we can expect to test the 25200 neckline area yet again! I know. I’m tired of this area also. But stay with me. I promise we are getting close to another crypto bull run soon. And it will be worth the wait.
