SPY is showing EXAGGERATED BEARISH divergence on the weekly time frame
$SPDR S&P 500 ETF Trust(SPY)$ crashed from $457-$410 last year in September.
In the last 100 years, September is the worse month for trading and investments.
Image
On Sept 18, the FEDS will cut interest rates by at least 25bp. The chance of cutting by 50bp is about 30%. This could be bad for inflation because it will make people borrow more money and spend more.
Image
Here's 3 critical things you must know in 3 mins for this month:
#1. In 2001 and 2008 when the FEDS cut rates, a recession followed right after. The market c $SPDR S&P 500 ETF Trust(SPY)$ sold off in August to $510 because of recession fears triggered by a slowing labour market.
Image
#2. This Friday on Sept 6th, the government will release the US unemployment rate. This can crash the market if it comes in higher then expected at 4.2%.
Image
#3. This is what happens to $SPDR S&P 500 ETF Trust(SPY)$ on average since 1928 during election years. Look what happens in September to November. There will be insane volatility this month as history has shown.
Image
$SPDR S&P 500 ETF Trust(SPY)$ is showing EXAGGERATED BEARISH divergence on the weekly time frame here:
Image
Example exaggerated of bearish divergence:
Image
Disclaimer: Trading is extremely difficult. You most likely will lose all your money before you make money. Trading results are all performance based and depends on many variables. The chances of you duplicating these trades actual results are unlikely.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
