Last two days have been very interesting. Almost a 300 pt move in the Dow yesterday! It seems like a lot of people were “short covering” which caused the markets to drastically move up.
What is interesting is the seasonal charts of SPY and VIX are very different. The market is following the seasonal chart for the SPY.
For the seasonal chart the SPY shows that tomorrow (Sat) is a possible reverse date.Let’s look at the SPX chart. One possible resistance point we have now is 1554.
Harmonic Analysis is showing 155 for SPY as the next resistance value.
This is a very interesting situation. I am probably going to short the market when SPY reaches 155 with a tight stop.
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