Right now, we see blood everywhere in the market and S&P 500 ETF SPY is forming a bearish "Megaphone Top" chart pattern. Without going into details, this bearish signal indicates that the stock price may fall from the current level to the range of $415.00 - $421.00. The pattern formed over 54 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis. It means another 20+ points lower from here, which means over 200 points downside for S&P 500!
Of course, this is a pure TA analysis which may not necessarily materialize as such, however, this is the likely potential for the near term as the magnitude of the correction for the market. In the very near term though, judging by the panic extreme we are seeing right now, it feels like the end of the world but the market has a habit of not dying like that. My gut feeling is that we will see a decent rebound very soon that may go up as high as towards 465ish, which will then be followed by another plunge if this technical setup indeed plays out as such. So fasten your seatbelt for the next few weeks! A lot of volatility will surely come up. 🤓😉
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