As you can see in the chart, $SPY is about to face a very strong weekly resistance if it'll continue its climb towards 204-205$
The weekly chart reveals 3 major resistance elements:
1. 2 broken uptrend lines that now support to change role into resistance (dark green dashed lines)
2. Daily downtrend line (red)
3. 50 weeks MA
Technically, what we see is that $SPY has more "room" to climb, up to 205-206$ to meet the downtrend line without making new high above December's highs.
The adds more reasons to look for opportunities near 205$
$SPY will complete pattern just inside the 204-205$ zone (with X above 206$).
If you recall and you've been following the MarketZone's analysis for more than a year now, 205$ was a critical throughout 2015
Scenario - Look for shorting opportunities as long as $SPY remains below 206$
Tomer, The MarketZone
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