SPY Spiders ETF Daily Chart Sideways Symmetrical Triangle Gaps

SPY ETF shows the blue line negative divergence over the one and two month time frames that caused the early May spank down. Rising wedge shown with red lines.  Price fell to the 1340-ish support shown by the black line. Generally, the chart continues to top and roll over moving forward. Last week, despite the wild moves, price moved sideways, and now, as shown by the purple lines, a sideways symmetrical triangle is formed and a break out will occur on one side or the other. The triangle continues to funnel price in tighter and tighter until a move is forced.

20 MA above 50 MA favors bulls but price under the 20 MA favors bears. Stochastics are below the 50% level; watch to see if the RSI drops under 50%, that will verfiy a bearish move. This chart is topping and rolling over currently, volume is greater on the down days, in addition, the rally is over 2 years old now from the March 2009 bottom; typical rally is 24 months.

Above, you see a small gap at 136 that will need addressed but the gaps below are rampant as the green circles show; all of these gaps will need filled at some point. Chart is bearish and price continues to roll over, watch for a drop thru the triangle, the RSI sub 50% will confirm the move, as well as the 20 MA moving under the 50 MA. The 136 gap must be respected by bears since price will need to come back up to fill that gap just as price had to come back up to fill the 133-134 gap left behind at the February top.

Overall, price should move sideways to sideways down going forward into Autumn. Potential H&S now forming with 137 head and 134 left shoulder; watch to see if a right shoulder forms during May and June. A drop down in price now, in the short term, then move back up to the 136 gap fill--to create a right shoulder--in the summer, would be a perfect scenario over the next couple months. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.