SPY fork pattern analysisI published another fork pattern idea earlier today (see related idea) on the daily chart pointing out how the fork patterns predicted the lasts 2 major market falls and the starting of the recovery after the previous fall and likely the point where recovery starts for the current fall (which was yesterday). I went to 1H chart to get a feel for where the market is going. You can see (for the 1st fork on th chart) the market fell when it reached the top fork line and that yesterday SPY went below the bottom fork line (for the second fork). The 3rd fork, meant to predict the market direction, is a bit premature: it's only based on 2 days of price action and it's rather narrow. Price action over the next days will likely go beyond the fork and will expand it. However, the fork may still give a valuable idea about the upcoming trend. Thus I predict that the SPY will reach the last red circle on the graph (when the last fork will reach the top line of the 2nd fork). That is around 342-343 on Oct. 13. As I said, this is preliminary, as the price action over the next days will likely expand the fork and thus, that point of intersection may come sooner. Whenever it comes, I find it rather likely that SPY will have a little, temporary fall at that point. That may happen instead when the last fork reaches the green line of the 2nd fork (where the 1st red circle is, around 339 price level on Oct. 7) but I find that less likely.
Conclusion: go long.
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