SPY has been riding a clean rising channel for months and just briefly wicked below the lower trendline, then bounced back above — meaning this is a pivot moment. If SPY can reclaim ~675+ and hold, this was likely just a shakeout and the uptrend continues. If SPY instead rolls back over and closes under ~665 again, then the rising channel is broken and a deeper pullback is likely. This week’s close is extremely important — bulls need to hold/defend this lower channel.
Bullish continuation (trend holds):
Buy debit call spread if you see SPY reclaims & holds >675:
Buy 680C / Sell 690C
Target move back toward upper channel.
Bearish break (channel fails):
If SPY loses 665 on a close:
Buy 660P / Sell 650P
Target: move toward 650 zone where next support sits.
Bullish continuation (trend holds):
Buy debit call spread if you see SPY reclaims & holds >675:
Buy 680C / Sell 690C
Target move back toward upper channel.
Bearish break (channel fails):
If SPY loses 665 on a close:
Buy 660P / Sell 650P
Target: move toward 650 zone where next support sits.
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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.
Disclaimer
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.