SPY $410 Support- Potential HTF bottom formation
I've been targeting the $410 area since I watched SPY begin to break down in August- I see quite a lot of support around this level, and I see this level as an important horizontal for all possible outcomes moving forwards.
I could see this level acting as MAJOR HTF support- but i'm also wary of the fact that a bounce from this level could act as a Wave 2 correction. In this scenario, we would expect 2 more significant corrective waves to the downside following this $410 bounce. IF we see a significant bounce from the $410 level, only to see that moved retraced in the following months... I would interpret that as highly bearish and look for bearish price action to take us much farther to the downside into next year.
I could see this level acting as MAJOR HTF support- but i'm also wary of the fact that a bounce from this level could act as a Wave 2 correction. In this scenario, we would expect 2 more significant corrective waves to the downside following this $410 bounce. IF we see a significant bounce from the $410 level, only to see that moved retraced in the following months... I would interpret that as highly bearish and look for bearish price action to take us much farther to the downside into next year.