There is one pattern and one trend that spy sticks too more than anything else. 1. Run off a double bottom 2. When the fears that cause a drop are gone retrace back to previous levels.
Spy daily
Spy routinely makes and respects double or triple bottoms throughout it’s history in many different time scales from the 1 minute to the daily.
The September- October dip
When a pullback comes to an end spy will usually run hard back to previous levels in a shorter time than the dip took.
This all leads us to the current pullback that is happening from covid fears and a rise in restrictions from this wave of cases. We now need to have a timescale for when to expect this dip to end but moreso when the news that caused it will end.
As I was typing this spy did a double bottom
Right now nobody is buying and the market is risk off. Spy bouncing will happen eventually it’s just a matter of how soon and that should be once covid fears are gone which can take a few days to a week or two. I don’t think it will last long because the market right now fears country wide shutdowns and closures but realistically in most places this won’t happen.
448-450 is a support region it could go lower or bounce before touching this it depends how the news comes but remember the original March 2020 covid pullback only last four weeks this is not the end of the world this is an opportunity.
These retracements usually are found in gap ups and intra day runs.
In closing spy will bounce but when is what we must look for. It could be happening already, be careful though as it’s a tense environment and one piece of guh causing news can continue the dip.
