SPY broke the $280 major support level today and continued a drop down towards $277 before and end of day bounce up. If you take a look at the daily chart, price moved below the 200 day MA but failed to close below which would have been extremely bearish. However, the daily candle movement has dropped fully below the green ichimoku cloud confirming a very strong likelihood of a sizable incoming drop, my guess is a drop to at least $260. The next major support is at the $272 level where I expect to see a bounce back up. It's possible that we see a bounce up to the $280 level which will now act as a resistance point before the continued drop down towards the 0.618 Fib Level at $260 but a very strong buy volume would be needed for this to occur. Personally, I believe the red path is the most likely price movement for the upcoming weeks with a break of the $272 support level to around $269 area then, a R/S reversal with a bounce up to $272, followed by a move down towards $260.
Looking at the hourly chart on the right for some predictions on price movement for remainder of the week, the MACD has room to make a crossover so a quick move up to $280 before a drop down towards $272 would make sense, this is shown by the yellow path which will be a fast retrace up and down, a separate movement from the possible bounce up to the $280 shown by the light green arrow on the daily chart.
Looking at the hourly chart on the right for some predictions on price movement for remainder of the week, the MACD has room to make a crossover so a quick move up to $280 before a drop down towards $272 would make sense, this is shown by the yellow path which will be a fast retrace up and down, a separate movement from the possible bounce up to the $280 shown by the light green arrow on the daily chart.