For fun, I decided to draw in -- scribble -- some rounding top and rounding bottom formations in the SPY over the last few market cycles. The reason why I give any credibility at all to the pattern formations is that it provides the psychological sentiment of the market -- that the bullish euphoria is coming to an end, that the bullish strength is weakening. I feel that the symmetry of the red parabolas provide the resistance and support areas for the price action.
If this price moves like the past, expect a few months of red to go down to around 175-180 before moving sideways to touch the end of the parabola. Afterwards, like the past (specifically 2000), expect massive collapses.
If this price moves like the past, expect a few months of red to go down to around 175-180 before moving sideways to touch the end of the parabola. Afterwards, like the past (specifically 2000), expect massive collapses.