SPY S&P 500 ETF Daily Chart negative Divergence Inverted H&S Gaps Island Reversal

SPY chart shows the overbot conditions and negative divergence blue lines that is spanking price down. The red lines show the inverted H&S that many other technicians are relying on. Keystone does not agree with the inverted H&S pattern, one, because an inverted H&S is best used after a long sell off rather than a top, and second, SPY is rolling over on a weekly and daily basis as shown by the negative divergences.

Also, numerous gaps exist below, the 132 area is big enough to drive a truck thru. There are a couple gaps above that will need filled as time moves along but the gaps below are profuse. Note the island reversal in early April, and then in mid-April, price jumped the same gap again creating another island that SPY currently sits on, setting up another potential island reversal.

 Watch for the 20 MA to move down thru the 50 MA which will verfiy continued weakness. Projection is sideways to sideways down moving forward. 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 finanical advisor before making any investment decision.