SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend

Overall, these setups continue to warn of a reversal, but as of right now, we don’t have any confirmation that the bullish trend has ended. We will warn that any future breakdown in price below this Island price formation would be a very clear indication that the bullish trend has stalled and a new downtrend may be setting up.

There is another type of Japanese Candlestick pattern that this resembles, which called a Scouting Party. A Scouting Party pattern is established when price moves above resistance or below support in an attempt to secure new price highs or new price lows – but fails to hold these price levels over time. This is also indicative of an attempted price trend that fails and results in a price pullback/correction.

Right now, the market price in the SPY and SPX is “scouting for new support." Keep your eyes on the magenta resistance levels as price continues to try to retain these new highs.

1 2
View single page >> |

Disclosure: If you want to know where the market is headed each day and week, well in advance then be sure to join my Pre-Market Video Forecasting service which is  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.