20 Year SPY Quarterly Chart
I have been watching this chart since the pattern started breaking out. If you go to the blog you will see this chart from a couple months back. The pattern looks to be playing out and like I explained in the chart, I am looking at this from a view of the investors and traders expecting future quarterly revenues to increase. If we break the chart into quarters, I believe you can analyze it from a view of quarterly sentiment and earnings. Therefore I think this pattern is pricing in a move towards at least 165ish if it is to play out on the measured move. This could come to a halt of course via some crazy thing happening, but it is a possible scenario. At the same time you can see we have been trading in this range since 1997 and it was these to bear sell offs that created the range. Now with the FED pumping money into the system creating inflation and this flag pattern taken place, we could be breaking out to new highs in the future overall. You know how you have those people yelling out DOW 14,000 well who knows could happen and S&P 500 could follow. In any case, If we stay in a range bound market then expect the possible havoc to come in the 3rd quarter of this year or maybe going into the 4th. Enjoy the analysis and video will be up shortly. I am still trying to work on the outline for the video again, since I am now just getting back into the flow with them, so please bear with me.
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