Time to buy SPY? Don't fight Bitcoin strength
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Triangles like to break to the upside, and the below 4-hour Bitcoin chart shows one in progress. Traders need to adapt; you don’t have to be long Bitcoin, but in my opinion, there is no reason to be short here, from a technical perspective.
That said, of course, I think the probability is now an upside breakout rather than the buyable dip at $31,800 I have been suggesting. There is certainly no reason to sell any part of a stack either, in my opinion. The below weekly chart has as bullish a look to it as when I first started showing it months ago. A break of the dashed line, and who knows how high it will fly? (my guess is next resistance around 41k).
Finally, the S&P futures chart on the daily timeframe; no crash thus far. As I mentioned on Friday, I would be on the lookout for a flip to the long side. Daily momentum is oversold (so is weekly) and the price is hitting the bottom of a clear downward channel. I think prices will most likely find support here; the target is a move back to the top trendline. The question is whether a rally will soon break the formation of lower highs and lower lows in place from late July.
Thanks, and have a nice week,