SPCX The SPAC ETF Daily Chart Overbot; Rising Wedge; Negative Divergence

The SPAC's are all the rage these days. A Special Purpose Acquisition Company is a company that exists as a wheelbarrow full of cash looking to buy existing companies especially hot fledgling tech companies. The SPAC is a pimp just tucked out of view in the alleyway waiting for some opportunities to walk by. He has some cash and he's looking for some flash. A SPAC is simply a scheme to avoid the regular IPO process.

SPAC is a swanky name. It sounds like that women's under garment, what is it Spanks, or something like that Spax, Spanx? What would Wall Street be without acronyms? The SPAC holds all that Wall Street pork together.

SPAC's are 'blank check companies' where the executives can walk around like Santa Claus choosing acquisition targets. Retail investors getting involved in these instruments are at a disadvantage compared to the hedgies and up-front investment buddies that will control the SPAC.

SPCX is a SPAC ETF. There is also SPAX and SPXZ but these are not trading on the platforms monitored. These instruments are in their infancy so the charts are babies. A SPCX weekly chart does not even show any indicators as yet.

The daily chart above shows universal neggie d so the top is in on the daily basis. Price should not come back above the red line. A spankdown should occur. Price may fill some of those juicy gaps that were left behind. Keystone does not plan to play it, if so, it would obviously be short in the daily time frame.

Note how each of the three highs come on huge volume spikes. A sell day follows as traders that made money bank coin. Note that for each of the three highs the buy volume candlestick is smaller, and smaller. SPCX will probably be spanked this week.

The reason for posting the chart was that it says the SPAC craze is over in the daily time frame, for now. A lot of hot money has chased into this Wall street casino SPAC game as evidenced by the chart, and it helped maintain the elevated US stock market. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Sunday, 2/21/21: SPCX is 32.20 to begin the week. Watch 32.50-32.60 that high from 4 days ago. The chart indicators are all sloping downward so if price comes up and snags the 32.50+ area, a matching or higher price high, that will be neggie d and the top is in; you would grab that price for a short entry. As mentioned, it is a baby chart-wise, but the 20-day MA is at 31.04 and it desperately needs to at a minimum come back to this support to show it respect. A point or two drop in SPCX is a -3% down move. There are a lot of juicy gaps down below that will need filled at some point in the future. Keystone is not in SPCX and will likely not play it. All this stuff is crapola.

Note Added Friday Morning, 2/26/21, at 6:06 AM EST: SPCX drops from 32.91 to a low at 30.09, -8.6%, in only 10 days.