SPY - A Clear Path Forward!
Updated
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.
Note
I can pretty confidently say SPY is done here. I'll be shorting tomorrow.
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