by moneytheistix
I have reason to believe that the US Covid-19 recovery is going to reverse it’s bullish trend starting sometime this month. One can construct a support line for daily ticks beginning after the initial crash in March, as shown above. This trend line was crossed from above twice in the past few months, and is now riding on the line.
Looking at the Pring’s Special K indicator, it shows a trending wave near the support line crosses, with the latest peak happening this week.
If this PSK wave continues, we can expect SPY to break down from the support line. A break down from the trend may imply that SPY would be going into bear territory for at least the next month, and possibly further out.
What are your thoughts about the possibility of a recessive economy starting sometime this month and extending further into 2021? Will the prospect of a stimulus bill push SPY upward from the support line?
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.