184 is also a key level from OPTIONS EXPIRATION as we have had 2 expirations at that price which adds to the level of importance of the price level 184. Please see the "SPY OPTIONS EXPIRATIONS GRAPHS" I have posted over the past year here at TradingView.
Why isn't the market holding at this level this time? Perhaps the new season is making investors hesitant. Perhaps the new budget that passed the house is viewed as recessionary since it cuts the spending side of the equation. Perhaps investors realize that China is running into trouble and with no monetary easing in the visible future, that markets are vulnerable.
The decline I have drawn seems extreme at first glance but it is only a 10% decline, which is normal in the context of history. We have had many 10% declines in the market.
If the market stays under 184 for the entire day today (Friday), a 4-day sell signal triggers that has a price target of 178. I would cover half at that level and lower the stop to 181 at that point in time and look for a much larger decline over the course of the next 23 days. 23 days is the total number of days at 184 and we could be in a decline for the next month.
Tim Saturday, 10:43PM EST