Update on SPY
SPY broke below 340 and 330 support levels this week confirming our bearish bias from last week. Today, SPY reclaimed supply of 331 and 333 but sold off towards close extending into after-hours due to disappointing tech earnings reports. The 325 level on SPY is strong so if it holds, we may trade in a range of 325-333 for some time but with the recent rise in covid cases, new shutdown of states/countries, and the uncertainty around election/ stimulus, expecting more downside in the market. The recent distribution ( selling) volume and momentum is a clear indication of weakness so until we see some strength, calling a bottom is premature so as traders it is better to remain unbiased and trade based on the charts. The next levels of supports for spy are 323.5, 320, 315, 310, and finally 300. Trading conditions have been rough these last few weeks with a lot of choppy price action and low volume but hope the market regains momentum post-elections. Good luck and stay green!
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