SPY falls out of its channel on geopolitical risk SHORTSPY on the 2H chart shows the past six months of trend. SPY has been in an ascending channel
but fall out of the channel. Iran's ambition to retliate against Israel and the movement of US
NAVY warships into the the Middle East raises concerrn as does "sticky inflation" and early
earnings reports from big banks. On the chart, trend angle analysis suggests the SPY may be
topping or correcting its ascend. The shorter VWAP line are more flat than the longest VWAP
line. I see this as impetus to further implement my hedging strategy with conviction and
discipline. I can easily appreciate that SPY could pullback to 490 ( the middle anchored VWAP
line) and easily could pullback into 465 as a standard Fibonacci retracement. Obviously
fundamentals can trump technicals. Geopolitical risk is significant can easily trump both of
them. I find good cause to hedge with inverses of ETFs of the indices and inverse ETFs for
technical stocks, and perhaps banks, financial stocks and bonds as a means to buffer any fall
my long positions moving forward.
