I SPY with my little eyes...

2 Apr 2018

Welcome back traders! Let's get to it, here on the 4 hour chart we can see that the SPY has indeed cracked right through the bottom of the smaller triangle and with that green candle what I see is a rebound (the 1 hour chart paints a better picture of this). SO, to keep things short and simple, what we could see tomorrow is an open initially trying to break the bottom of that triangle but ultimately will fail and continue on down towards it's final thread. Once there I wouldn't expect a straight break, there'd be some jigsawing there before it decides to break. Now this could all go the opposite way BUT all signs seem to point straight to this! So I'd be keeping an eye out and expect to see something along the lines of that curve that I've drawn. 1 hour, 4 hour and 1 day charts have all closed the day showing a bearish MACD, thus supporting this possible outcome. As always good luck & safe trading, till the next one!