The end of bear market? SPX is pointing to a bull market trend.
The analysis provided suggests that the SPY (SPDR S&P 500 ETF Trust) has broken out of a falling wedge pattern that began in January 2022 and is now on the verge of breaking out of an ascending triangle pattern. The falling wedge pattern is typically a bullish continuation pattern, while the ascending triangle is also a bullish pattern that signifies a potential continuation of an upward price trend.
Additionally, the analysis notes that triangle patterns are often observed following strong and extended price trends, as buyers and sellers test the new price of a stock and become more or less aggressive over time. Ascending triangles are considered to be bullish signals, indicating a potential continuation of the upward price trend, while descending triangles are considered to be bearish signals, indicating a potential reversal of the upward price trend.
Based on the analysis provided, the expectation is that the SPY will continue its bullish trend and break out of the ascending triangle pattern. However, the analysis also mentions the possibility of a seasonal push down in September/October, which may cause a temporary dip in the price of the SPY. Nonetheless, the analysis suggests that this dip will not push the SPY back into bear territory.
To further expand on this analysis, it's important to consider other technical indicators and market factors that could impact the SPY's price movement. For example, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are popular technical indicators that can help confirm bullish or bearish trends and potential price reversals. Additionally, market news and events, such as economic data releases, corporate earnings reports, and geopolitical tensions, can also impact the SPY's price movement.
Furthermore, it's important to note that technical analysis is not infallible, and there are always risks and uncertainties associated with investing in the stock market. It's essential to conduct thorough research and analysis, diversify your portfolio, and consult with a financial advisor before making any investment decisions.
Additionally, the analysis notes that triangle patterns are often observed following strong and extended price trends, as buyers and sellers test the new price of a stock and become more or less aggressive over time. Ascending triangles are considered to be bullish signals, indicating a potential continuation of the upward price trend, while descending triangles are considered to be bearish signals, indicating a potential reversal of the upward price trend.
Based on the analysis provided, the expectation is that the SPY will continue its bullish trend and break out of the ascending triangle pattern. However, the analysis also mentions the possibility of a seasonal push down in September/October, which may cause a temporary dip in the price of the SPY. Nonetheless, the analysis suggests that this dip will not push the SPY back into bear territory.
To further expand on this analysis, it's important to consider other technical indicators and market factors that could impact the SPY's price movement. For example, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are popular technical indicators that can help confirm bullish or bearish trends and potential price reversals. Additionally, market news and events, such as economic data releases, corporate earnings reports, and geopolitical tensions, can also impact the SPY's price movement.
Furthermore, it's important to note that technical analysis is not infallible, and there are always risks and uncertainties associated with investing in the stock market. It's essential to conduct thorough research and analysis, diversify your portfolio, and consult with a financial advisor before making any investment decisions.
