JK. SPY's moves have been difficult to read and predict recently, but the overall trend is clearly down. There are two scenarios that I'm entertaining these days.
1) Breakdown from here:
SPY could just break down and head for $350, then eventually $300. A measured move of the down trending channel supports a fall to $300. There's a little support around $350 from that double bottom structure to the left. If that fails, price will likely head into COVID Crash territory.
2) Price could get a bounce soon up to the targets I have laid out, which are based on some recent trends. That (loosely) repeating series of downtrends would make sense, as would closing the gap at about $400, before this whole thing falls apart. A pump up from today's prices would also create a lot of exit liquidity for institutional investors, as retail investors would likely fomo into a price spike.
Secret option C) Price could move sideways here for a while, either consolidating or distributing prior to the next big move, either up or down. I think this is pretty unlikely, though.
Them's my thoughts on all this, y'all. Have fun and trade safe.
1) Breakdown from here:
SPY could just break down and head for $350, then eventually $300. A measured move of the down trending channel supports a fall to $300. There's a little support around $350 from that double bottom structure to the left. If that fails, price will likely head into COVID Crash territory.
2) Price could get a bounce soon up to the targets I have laid out, which are based on some recent trends. That (loosely) repeating series of downtrends would make sense, as would closing the gap at about $400, before this whole thing falls apart. A pump up from today's prices would also create a lot of exit liquidity for institutional investors, as retail investors would likely fomo into a price spike.
Secret option C) Price could move sideways here for a while, either consolidating or distributing prior to the next big move, either up or down. I think this is pretty unlikely, though.
Them's my thoughts on all this, y'all. Have fun and trade safe.
Comment:
I can pretty confidently say SPY is done here. I'll be shorting tomorrow.