Week of May 8th, 2023

$SPY continues a 30+ day balancing within a megaphone

SPY 0.00%↑last week confirmed a gravestone doji and sold off from 417 to 403 before the dip was bought and now continues to balance in this broadening wedge pattern that started back on the first week of April. This technically to me still appears to be rather bearish as it forms a sort of bear “nest.” Bulls have had literally every reason to breakout and yet 417.81 has held the line for the entire year. There was even a perfect C&H for a technical breakout to 430+ and yet it still failed and instead is forming a megaphone which is producing higher highs and lower lows (volatility expansion). To me, this suggests a rather large move coming very soon, at least $25 in either direction on $SPY.

Here is the weekly chart with less noise:

And now the monthly:

Here are the high volatility events for next week:

For this upcoming week I will be watching the following setups and levels: