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 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