SPY Trading at the "Make or Break" zone into CPI, FOMC, & OPEX

It is always amazing to see how the market ends up being at extremely important technical levels into big weeks like the week coming up. SPY is trading at the previous support zone from before the bear market started which ended up being a reversal zone in August and price is now here again. With CPI data, the FOMC decision, and OPEX into the end of the week, this is a very important technical level to get above which is currently right at $431.75.

Comment:

The most important part of this setup is when this "make or break" zone becomes a breakout or is just another rejection as we saw in August '22. In technical analysis, it is always crucial to have confirmations and invalidations. Since this is a weekly candle, the weekly price would need to close above the top of this zone at $431.75 to really start the next leg up and confirm bulls are in control. Since the price broke down and closed below this zone in April '22, there has not been a weekly close back above this level. For that reason, when there finally is a weekly close above, that is when the "status quo" would change, and a confirmation of a bullish move towards the $445-$450 next resistance zone above would occur.