Here Is Where The Market Will Break Down

Published 05/29/2014, 02:52 PM
Updated 05/14/2017, 06:45 AM
SPY
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This channel on the chart of the SPDR S&P 500 (ARCA:SPY) shows traders and investors something amazing -- It gives precise insight as to when the markets will break down.

Perfectly Parallel

Note how both trend lines are perfectly parallel to each other. To discover when a major break down is coming, simply look for the break below the channel. As soon as that happens, the market will sell sharply. Watch for the SPY to drop sharply following that break to a level of $188.50.

An hour before Thursday's close, the ETF was trading at $191.78.

The SPDR S&P 500 ETF Trust

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