In times like these, it's important to focus on the bigger picture and view things from a longer term perspective.
The weekly chart on the SPY continues to show that we are still in the consolidation pattern.
Even with all the week's price action, all of the major levels we outlined the past few weeks have held so the following scenario is still in play.
We see 2 possible scenarios of which I believe the 1st scenario is more likely:
1. If the SPY can hold the ~189 level then the expectation is that we see the market work its way higher.
We now have 2 upside targets in the form of
An unfilled gap @ 199.73
An unfilled gap @ 196.46 which is an attractive short term target.
The media's weekend market coverage is covered in bear droppings.
I still believe everyone is overly , and rarely does the market accommodate the masses.
My mid-term target continues to be the unfilled gap way up @ 208.32 which would result in a re-test of the symmetrical triangle.
2. Else if we break and close below the consolidation pattern to the downside, expect to see the ~189 levels.
If the ~189 level fails to hold then we can expect to find ourselves back at the lows of 182.40 with the following downside targets -
Unfilled gap @ 188.07
Unfilled gap @ 177.48
Unfilled gap @ 173.22