Flipping SPY! - When Support Beaks and Resistance is Forged
This idea takes some latitude when referring to the
SPY
using the
ES1!
chart, both being a derivative of the S&P and understood as being similar when moving at a macro level (higher time frames).
Previously the recent observable trend was that there was a high chance that the
SPY
would dip soon after options expiration, which it did, followed by a rally after that would continue to take price higher. However, those previous corrections in price had shown to respect an observable trend line acting as support while the most recent correction in price has dipped below this level of support and confirmed it to be a level of resistance. It'll be interesting to see how this plays out since the last time we saw this trend act as resistance was soon after the 'covid lows' and continued resistance could give "bears" enough attrition from the "bulls" to help tilt the balance of the market.
Note: when referring to bulls and bears I am simply referring to the overall balance of the market, primarily based from structure, rather than any groups of traders or the direct intentions of those traders.
Relevant Symbols:
ES1!
SPY
SPX
SPY
using the
ES1!
chart, both being a derivative of the S&P and understood as being similar when moving at a macro level (higher time frames). Previously the recent observable trend was that there was a high chance that the
SPY
would dip soon after options expiration, which it did, followed by a rally after that would continue to take price higher. However, those previous corrections in price had shown to respect an observable trend line acting as support while the most recent correction in price has dipped below this level of support and confirmed it to be a level of resistance. It'll be interesting to see how this plays out since the last time we saw this trend act as resistance was soon after the 'covid lows' and continued resistance could give "bears" enough attrition from the "bulls" to help tilt the balance of the market. Note: when referring to bulls and bears I am simply referring to the overall balance of the market, primarily based from structure, rather than any groups of traders or the direct intentions of those traders.
Relevant Symbols:
ES1!
SPY
SPX
