SPY Major Failed Breakout? [BEARISH]

The S&P500 has now found itself on the wrong side of what was once a potentially very bullish trade just days ago by breaking BACK into a bearish ascending channel pattern that SPY has been consolidating in since April.
In this chart, we zoom in on the 4 hour chart where only see a part of the ascending channel showing in red as a trendline.
This red trendline was broken and the S&P now find itself below the trend after getting rejected by a bearish wick. If bulls do not come in with bids, SPY will most likely see further action to the downside and that would be a dampening on traders after the excitement of gains in the market today.
Look for a retest tomorrow of 429. A close below that on the daily would most likely result in a retest of Monday's low, which would put the S&P500 at risk of confirming an extended downtrend.
It should also be noted that a key fibonacci level also is just above the price, coinciding with the 21 moving average as well.
Comment: Please check my recent post "VIX Weekly Close Today Could Be Pivotal for S&P500" for an update on the most recent price action of this idea.


what now? were bears trapped again??!?!?!!
+1 Reply
@Bishmar Im posting an idea on this later tonight
@rlaumandesign i believe it was 429 if im not mistaken.. not 439. And i made a post on this last night in regard to how important the VIX will be to watch.. not just the SP500 price as this can be misleading. Bulls still have a lot of work to do but so far theyve made some headway that was lost earlier in the week. The MONTHLY close is perhaps what u want to watch in regard to the SP500 specifically.