SPY: Week of April 15Last week I just did a longer timeframe update.
I am going to continue with the larger timeframe as the focus but will also give the shorter timeframe levels for next week.
You can see we've just chilled below the 3 month threshold for far too long. It's 504 on the horizon, that's for sure.
We will likely snag a bit lower, because I didn't realize there was this giant daily gap on SPY that stems down to 497 (its the purple box in the chart).
A gap fill doesn't require us to hit PL2 on the 3 month, but it does require us to hit PL1 on the 3 month, (504).
Some pretty bearish readings registered for next week, and likely going to kick off right off the bat into Monday based on the daily outlook assessment.
The weekly levels to watch are here:
Would be nice to just get to the point, get into that gap zone and then we head back to 532.
We'll see how eager it is to just get it done.
The selling is pretty controlled with too many eager and early bulls. This makes for PA that is dreadfully terrible with its slow pace and choppy grind down.
If we manage a gap fill it will just be back to straight up.
For next week, look for 504 and below.
Long zone is between 497 - 503.90.
If we can get some selling catalysts we can probably increase the velocity and just get it done early next week and reverse into mid to end of week.
Remember, probability is indicating a particularly bearish start to the week on Monday so just be careful you permabulls ;).
Those are my thoughts!
Safe trades!