SPY Channel
SPY futures are trading within a clear down channel. As the current trading price nears the support, a short-term buying opportunity presents itself. There should be a slight bounce back as the resistance is approached, but as selling has been done on higher volume than buying, we maintain a bearish outlook. There is an opportunity for very short term profits when the price is trading near the support (which is strong as it has been tested multiple times in the last two weeks), but the longer-term bearish outlook is maintained. SPY has shown a larger Head and Shoulders pattern with a pierced neckline on May 23rd which was followed by ensued price drops. As the distance from the apex of the head to the neckline is $15, projecting that distance downward from the neckline penetration at $181 leads to a price target of $166.
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