Good and Not-So-Good
Good is the current level of Inflowing Liquidity. (Inflowing Liquidity is something we measure every day.) Note last Friday's level at the close ... it was very high and above its triangular pattern which it broke out of. It was also in Quadrant 1 which is an Expansion level.
Not so good ... is the larger pattern on the SPY's weekly chart.
Yes, the short term Inflowing Liquidity is positive and moving up. The affect of the Liquidity can be seen on this weekly chart of the SPY. As expected, the SPY is moving higher now.
What doesn't look so inviting is the longer term, rising wedge pattern on the SPY. Note how the upper resistance and lower support lines are converging on each other. That continues to set a narrower up and down range. Typically, as the range narrows, the volatility increases until there is a breakout of the pattern. Historically, a rising wedge pattern is regarded as a bearish pattern.