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Parallel Uptrend Still Bullish, Waiting for SPY to Test the Lower Parallel Channel

Parallel Uptrend Still Bullish, Waiting for SPY to Test the Lower Parallel Channel

The S&P 500 (SPY) has been trading in a parallel uptrend since the beginning of the year. The price has been making higher highs and higher lows, creating a series of parallel channels. This pattern is often seen as a bullish sign, as it suggests that the trend is in place and is likely to continue.

The middle trend line of the parallel channel is currently acting as resistance. The price has tested this trend line several times, but it has not been able to break through. This suggests that the bulls are still in control, but they are starting to lose momentum.

I am waiting for SPY to test the lower parallel channel before making any trading decisions. If the price breaks through the lower trend line, it would be a sign that the uptrend is losing momentum and a bearish reversal could be in the works. However, if the price bounces off the lower trend line, it would be a sign that the bulls are still in control and the uptrend is intact. I will continue to monitor SPY and will update my trading plan accordingly.


Here are some additional things to keep in mind:

  • The parallel uptrend is still bullish, but the bulls are starting to lose momentum.

  • The middle trend line of the parallel channel is currently acting as resistance.

  • I am waiting for SPY to test the lower parallel channel before making any trading decisions.

  • If the price breaks through the lower trend line, it would be a sign that the uptrend is losing momentum and a bearish reversal could be in the works.

  • However, if the price bounces off the lower trend line, it would be a sign that the bulls are still in control and the uptrend is intact.


SPY Daily Chart
SPY Daily Chart

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