Happy Sunday!
Let's breakdown what happened this week with SPY and what I think will play out this week:
-We filled the gap
-Twice SPY retested the 200ema level @ $450.00 before moving back down
-Strength moved from bulls to bears once this happened
-On a 5minute chart the last 10minutes before the end of Fridays session we finally closed below the 200ema level signalling the bears are back!
Next week:
-Break of my support level @ $447.00
-We head down to test the low of the week @ $443.50
-Depending on the strength of bearish momentum I can see us heading to $440.00 which is another key level of support I have and we would be making a lower low
-If bulls come back and somehow buying pressure is refuelled and we break $450.00 then SPY can easily head to my next resistance level of $454.00. However note that on the hourly chart we're clearly in a downward channel making lower highs so a move to $454.00 would still be overall bearish
Have a great trading week everyone and please feel free to share your opinions in the comments :)
Let's breakdown what happened this week with SPY and what I think will play out this week:
-We filled the gap
-Twice SPY retested the 200ema level @ $450.00 before moving back down
-Strength moved from bulls to bears once this happened
-On a 5minute chart the last 10minutes before the end of Fridays session we finally closed below the 200ema level signalling the bears are back!
Next week:
-Break of my support level @ $447.00
-We head down to test the low of the week @ $443.50
-Depending on the strength of bearish momentum I can see us heading to $440.00 which is another key level of support I have and we would be making a lower low
-If bulls come back and somehow buying pressure is refuelled and we break $450.00 then SPY can easily head to my next resistance level of $454.00. However note that on the hourly chart we're clearly in a downward channel making lower highs so a move to $454.00 would still be overall bearish
Have a great trading week everyone and please feel free to share your opinions in the comments :)