The trends for SPY are becoming more evident - it has pierced through the 430 zone and got liquidated at the 426.06 support on larger time frames. The price hasn't completely overridden that support yet, which makes this a crucial aspect to monitor in the upcoming week. It will clarify whether this is a bounce or a retracement.
I drew circles as a simple way to show technical analysis - the price is in a downturn and is producing lower lows and lower highs. If a higher high is achieved, then the downward trend is nullified.
Key Levels to Monitor:
Look closely at the zone for SPY ($429.15 - $430.62). This area becomes less reliable the more it is tested. Once verified on larger time frames, a specific bounce or break will let us make call options on the bounce and put options on the break.
The $426.06 mark is another critical point to watch during the trading day, particularly the instability of the price when it intersects this support/resistance.
($417 - $418) Will be our target if a new low is made
Out of the 3 crucial levels, 6 potential trades exist, but as professional traders consistently successful, we will only engage in 3 High Confidence trades since our focus here is not on gambling.
I drew circles as a simple way to show technical analysis - the price is in a downturn and is producing lower lows and lower highs. If a higher high is achieved, then the downward trend is nullified.
Key Levels to Monitor:
Look closely at the zone for SPY ($429.15 - $430.62). This area becomes less reliable the more it is tested. Once verified on larger time frames, a specific bounce or break will let us make call options on the bounce and put options on the break.
The $426.06 mark is another critical point to watch during the trading day, particularly the instability of the price when it intersects this support/resistance.
($417 - $418) Will be our target if a new low is made
Out of the 3 crucial levels, 6 potential trades exist, but as professional traders consistently successful, we will only engage in 3 High Confidence trades since our focus here is not on gambling.