I see many people post that we will bounce up to 401 and fill two or three gaps that were created on the way down to where we are now. However, I am not convinced that we get such a move. If SPY cannot break above resistance at 380, I see potential targets of 352 (1.618 fib ret) and 336 (2.618 fib ret) next. One indicator I have been using that some might find helpful is the 14 SMA RSI overlapped with the 7 RSI. As you can see the 14 SMA RSI is still trending downward which has been a great indicator for me on where the market is heading overall. Once the 7 RSI joins (or reconnects) with the 14 SMA RSI, typically the 7 RSI regains momentum to whichever direction the 14 SMA RSI is heading. If this theory remains true, I expect more selling for the SPY in the coming weeks. This analysis is invalidated if SPY breaks 380 resistance.
Not financial advice
Not financial advice