My researchers and I want to highlight a Weekly chart pattern that is warning of a potential Top/Reversal in the SPY & SPX. Although the current trend is Bullish and the markets are looking forward to the new year, new policies, and probably new stimulus which normally prompts some type of upward price rally in the markets, we see an “Island Setup” that has continued to form after all the positive COVID-19 vaccine news.
An Island Setup in price is when price moves or Gaps away from a typical price range or boundaries, then stalls. This type of setup is similar in structure to a Doji Star setup in an “Evening Star” formation. Similarly, the Doji Star pattern also warns of a possible trend reversal. Our researchers believe any continued failure to rally at this stage points to a very real downside price reversal setting up in the SPY/SPX. Let’s take a look at some Weekly charts.
Chris Vermeulen
TheTechnicalTraders.com
“Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.”-Note from Dudley
SPY/SPX ISLAND SETUPS WARN OF A POTENTIAL REVERSAL IN THIS UPTREND
Stock Warrants – If Not Now, When? GET STARTED NOW
NEW Database now for all SPAC’s
Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.
E.B. Tucker with Casey Research recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.
“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”
