This Whole Week was a Bull Trap
The case for the potential bull trap set up this week-
After the big bounce last Thursday SPYs been getting some volatile relief this week.
I think that it's a big old Bull trap though as it seems SPY is inside of a rising wedge right now.
We ended the day today sitting between the support of the rising wedge and the previous resistance of the falling channel we were trading in before.
I think that tomorrow we fall out of the wedge to fill the gap from Monday and consequently end up back inside the falling channel.
AAPL, MSFT, and AMZN also have a bearish sentiment EOD today going into tomorrow-
DXY and VIX have a bullish sentiment EOD today going into tomorrow-
Index of common inflation expectations, 5-10 years released at 12:00pm est tomorrow
Index of common inflation expectations, 10 year released at 12:00pm est tomorrow
^I expect the market isn't going to favor the inflation expectations^
If I'm wrong about tomorrow and we end up bouncing up to the resistance of the wedge, then I'm still bearish on SPY for next week.
After the big bounce last Thursday SPYs been getting some volatile relief this week.
I think that it's a big old Bull trap though as it seems SPY is inside of a rising wedge right now.
We ended the day today sitting between the support of the rising wedge and the previous resistance of the falling channel we were trading in before.
I think that tomorrow we fall out of the wedge to fill the gap from Monday and consequently end up back inside the falling channel.
AAPL, MSFT, and AMZN also have a bearish sentiment EOD today going into tomorrow-
^Also Netflix double topped today after its earnings jump and could potentially drop another $10+ tomorrow adding further bearish market sentiment^
DXY and VIX have a bullish sentiment EOD today going into tomorrow-
Index of common inflation expectations, 5-10 years released at 12:00pm est tomorrow
Index of common inflation expectations, 10 year released at 12:00pm est tomorrow
^I expect the market isn't going to favor the inflation expectations^
If I'm wrong about tomorrow and we end up bouncing up to the resistance of the wedge, then I'm still bearish on SPY for next week.
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