The SPY is Bouncing off of Support for the Second Time (Updated)

RizeSenpai Updated   
Previously a trade was taken on the spy from this support level that targetted tthe $420-$425 level of Previous Support and Resistance after hitting this level of interest price came back down to support in early October. By this time we developed Bullish Divergence and eventually Gapped Down Below Support only to close Bullishly back above Support therefore Giving us a Bearish 3 Line Strike at Support along with a Bullish Divergence. Thisd is an update on that trade setup to point out the fact that price is now coming off that support zone and that on the Weekly we tested the 200 week moving average and are also Bullishly Diverging on this timeframe. If price comes back up to test the $420 level again it will hhave confirmed a Partial Decline and will be very likely to Breakout of the Descending Broadening Wedge pattern and test; Near, At, or Above the All Time Highs.
Trade active:
Tradeing on this Bullish BAMM Partial Decline Breakout is still active as seen by the recent entry signals found on the lower timeframes here:
We have confirmed Partial Decline and from the looks of it will come back up to atleast test the level of $422 and if that breaks we may near or exceed ATHs to complete the BAMM.
All those who failed to see the signs to take profit at $422-$425 are likely now underwater, as most people did not even believe the market would go up until it went above $422, and only then did they long, which led to them ignoring any and all signs of weakness near the highs as seen in the chart below: Now, in this second chart that I have listed here:
You can see that we have come all the way back down to where many people started buying and are now below it during the premarket. This means the bulk of the market participants are now down on most of their held positions, and that is something that may induce a volatile panic selloff, which could then trigger a volatile market crash. SPY may very well be set up to trade below $400 once more and in a worst case could go into the lower $300s to upper $200s


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.