SPY shows a potentially bullish technical pattern (bull flag/channel) that requires a breakout to confirm; success probability is reduced due to its position at chart highs.

Let's start with the S&P. Now, the S&P is currently up about 1%, filling the gap created from Tuesday's price action. This is pretty good for the markets as we're beginning to potentially try and test previous all-time highs on the S&P.

What am I watching? I'm watching that double top 779 37, the key level of resistance. But something I really want to highlight there is we're starting to create kind of a beautiful look at this downs sloping parallel channel.

Um you can even consider this a bull flag because we had this nice move up followed by this downward sideways um downward sideways consolidation favoring a move to the upside.

Now while this is a bullish pattern, it doesn't necessarily mean that it needs to play out. Now, why is that? Well, the reason why is because bullish patterns at the highs of the charts have a lower um lower likelihood of playing out compared to if they were at the bottom of the charts, right?

And while this is potentially bullish, it's only bullish if we can break above this down sloping parallel channel, right? um it stocks can continue in a downtrend for a significant portion of time.

So I wouldn't go all in saying this is going up for sure.