If SPY fails to push higher over the next couple of days, it will look like a Head and Shoulders (H&S) pattern. That could signal a directional move downwards is in the works (red arrow). In case this warning is correct and it makes another lower low (dotted line), traders will be estimating the potential profit and stop-loss probabilities for a complex bounce off of previous support and resistance (green arrow).
This probability discussion is for educational, speculative, or informational use only. It does not constitute investment advice.
This probability discussion is for educational, speculative, or informational use only. It does not constitute investment advice.
Comment:
This looks like it could be turning into another double top coincident with previous swings down. If the first bounce doesn't play out much, the strong resistance down around 294 could turn into strong support. A swing to 294 would time well with the first of January and reinforce the commonly-held beliefs about price direction after the New Year.
