1. 9 day moving average:
When price is in an uptrend, price stays above 9 day moving average. However on June 15th when SPY gapped below 9 day moving average and failed to reclaim it, price has been tagging it from below and has been capped by it. Now 9 day moving average is clearly slopped down, suggesting that much more downward movement is coming.
2. Failure to break the black downward , and the bottom of the gap created on June 25th.
Gaps are often where big money builds positions. The fact that SPY got rejected at that level, which was also the down , suggests that downward pressure is still strong at the moment. Notice that this comes at the heel of a at key 270. This is not good for the bulls and suggests that the may NOT play out. In particular, look at the selling in the last hour!
3. Failure to reclaim the upward green , making it a backtest.
Remember that the upward green was the long term that started in 2016. This suggests that more downside is coming. We are probably looking at at least what happened at the end of March. With fed's HUGE QT coming this weekend, July is going to start off with a BANG. We are looking at least 266 next week. If breached, we are probably going on to test 260-262 area.
Potential development given the coming holiday is that we go for another up day or two. The key for the upside is 273 level. If 273 cannot be taken out, then SPY could be setting up for an pattern with head already likely confirmed. The fully played out price target for this formation is 158, the yearly low.