Further yesterday's pre--market post, The SPY closed the week and month in a rather decisive fashion - at the low.
The weekly chart (left panel) shows the SPY follow through the downward momentum, after breaking down the HULL EHMA and failing the 55EMA. The close at the week's low, pretty much, also set a new lower low close, having gone through the June low support. This candlestick shows downward momentum, although it might be easing off with a relatively shorter candle compared to the weeks before. The technical indicators support this view with the MACD crossing under and extending further below the MACD signal. Downside target of 325 (yesterday mentioned 330) still remains in sight.
The monthly chart of the SPY (right panel) shows that as expected from the previous month candlestick, the failure to break and maintain above 416, with a long upper tail, followed through with a rather bearish monthly candle. This candle ended at its low for the month, with indication that there is great downward momentum due to the similar candle but larger body. The next candle for the month of October will be testing the monthly 55EMA at 354, just a few points away from the week and month close. Technically, the MACD and MFI all indicate further downside momentum to be expected, which also means a likely break of the monthly 55EMA should be expected.
Not a very bullish outlook for October at all, with almost no slowdown in sight. From these charts, it would appear that October may start of slightly bullish, but should be overwhelmed by the bears to head further down to target at 325/330 as the month continues to the end.
The weekly chart (left panel) shows the SPY follow through the downward momentum, after breaking down the HULL EHMA and failing the 55EMA. The close at the week's low, pretty much, also set a new lower low close, having gone through the June low support. This candlestick shows downward momentum, although it might be easing off with a relatively shorter candle compared to the weeks before. The technical indicators support this view with the MACD crossing under and extending further below the MACD signal. Downside target of 325 (yesterday mentioned 330) still remains in sight.
The monthly chart of the SPY (right panel) shows that as expected from the previous month candlestick, the failure to break and maintain above 416, with a long upper tail, followed through with a rather bearish monthly candle. This candle ended at its low for the month, with indication that there is great downward momentum due to the similar candle but larger body. The next candle for the month of October will be testing the monthly 55EMA at 354, just a few points away from the week and month close. Technically, the MACD and MFI all indicate further downside momentum to be expected, which also means a likely break of the monthly 55EMA should be expected.
Not a very bullish outlook for October at all, with almost no slowdown in sight. From these charts, it would appear that October may start of slightly bullish, but should be overwhelmed by the bears to head further down to target at 325/330 as the month continues to the end.
