SPY could be trading in an overextended wave 3 right now but based on how extended wave 1 and 3 have already been, it only makes sense to consider this the last wave of the impulse structure. The current range for spy on the macro scale is 381( support) and 385 (resistance). If there is positive earnings/news, markets can push markets higher, I see a max potential of 390 (max 400) but after which I expect a correction. But if the 381 support breaks first, I am expecting a drop to 371 in the best case and worse case, drop to 360 before finding support. Now obviously, the market sentiment is bullish right now so any pullbacks will get bought up as long as we remain in trend but the volume on the sell-side has been picking up a lot in the last few weeks so even we don't see a sharp correction( assuming sector rotation), I see decent value to downside on several names across the market. Stay hedged and trade smart this February!