The SPY (Monthly)

It has been a while since we last took a look at the monthly chart on spy. We originally thought there was an inverse head and shoulders on the monthly, but it actually looks like it may form a cup and handle.

It is really crazy to think how the market plays out with the real world. Remember a few months ago the spy was ready to drop as banking fears were taking over and the market was in a down trend for a while? Three very key event's occured to help make the cup and handle work. I mean, the better than expected inflation data appearing is bullish overall, but just when spy was looking like it might retest the 380s again, BOOM AI is all the news and the more anyone talks about AI investors would smash, in some cases BEAT WITH ALL THEIR FORCE (nvidia lol) the ask on AI stocks. However, this did not stop investors from fearing an all out recession this year. Jerome Powell didn't help much either. However, just when the market was at a key level, APPL and NVDA came along and, according to some investors, saved the market. The debt ceiling was "resolved" and inflation data seemed to be improving. And here we are now in July, above the upper band strong, but not at the top yet.

Will big tech earnings be bad and the market forms the handle for the next few months only to go up coincidentally in 2024 when the fed expects promising data on an improving economy? Or will the market crash? Do you think the market will even form the handle and end up doing what it wants? Really interesting perspectives to think about.

I hope you all made some money these past months.