- A fork pattern on SPY daily chart indicates that the market fall just ended and the market turned bullish.
If you draw the highest resistance trend line since the recovery started (the blue line in the graph) and from the high before the last one (where the red line starts, on April 29) draw a fork to the last high on that resistance trend line (on June 28) and to the latest low after that high (on the green line, on June 29) this fork clearly shows that SPY fell right after it opened and went over the the upper fork line (on 9/2) and, if the pattern holds, yesterday when it went below the upper line of the fork will be the point where recovery starts and the market will go up.
See the analysis (somewhat interactive) graph: SPY fork pattern indicating the fall ended and recovery started for AMEX:SPY by TradersForecast. (If you don't have an account with TradingView.com, where the analysis graph is hosted, and want to create one please use my referral link, https://www.tradingview.com/gopro/?share_your_love=adichira, and in case you ever switch from a free to a "Pro" account I will get a referral bonus, thanks!)
Or see the screenshot: https://www.tradingview.com/x/czyThXIR/
Analyst's Disclosure: I am/we are long SPY.
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