Market News Week of October 11, 2021
Pennystocksclub13
Market News
Week of October 11, 2021
What's going on in the market?
In our previous post, we discussed what could potentially move the market. We mentioned stimulus tapering, Fed report, Jobs Report, Retail report, etc. On Friday, October 8, 20201, the Jobs report that was issued was a huge miss and the market failed to digest the news properly. It seems that it temporarily moved higher today to test the upper trendline in the daily (1 year 1 day) chart pattern. We also mentioned that the SPY tends to respect trendlines that provide support and/or resistance. In this case, the upper trendline acted as resistance and stopped the price value to move higher. The upper trendline rejection at the 440.27 level sent the price in a downward spiral.
What can we expect for the rest of the week?
As mentioned in the previous newsletter, the SPY is currently forming a descending triangle, wedge pattern. These patterns tend to be bullish in nature and have a high percentage of breaking out to the upside. Barring any bad news in the market, we can expect the pattern to continue developing. This will begin compressing the price action until it has no room to go other than a breakout (push prices higher) or a breakdown (move prices lower).
How does a descending triangle/wedge pattern look like?
In the figure below you will see what a breakout might look like.
In the figure below you will see what a breakdown might look like.
PSC13 Educational Newsletter.
by Jose Navarro on October 11, 2021
**This newsletter is intended for educational and entertainment purposes only. Pennystocksclub13 intends to educate beginner traders with easily accessible and simplified information to shorten the learning curb. Traders should always do their due diligence and continue educating themselves about the risks involved with trading.
All charts courtesy of Thinkorswim platform. Pennystocksclub13 is not affiliated withThinkorswim.
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