SPY is currently in a larger, but similar pattern to the one it completed about two weeks ago. It appears like a slanted W, and is caused by short sellers taking profit, but bulls not having enough momentum to create a higher high.
Just like the previous (yellow) pattern, price did complete a very slight higher high (0.5% both times) and should now reject. The On Balance Volume indicator is also showing the start of a down trend in volume, another possible sign.
I will be looking out for put opportunities tomorrow, March 3rd.
Maybe... but probably not today. I think in general its a reasonable price target I just don't think SPY wants to make that move today. And its looking less and less likely as the morning progresses. And if SPY opens at 339/340 and maintains this same sentiment I am seeing now, it will be game over for shorts. Likely lows will be around 338 maybe 336. Just be careful! But I have to admit, I am not 100% sure on this one. I have been personally avoiding SPY for the time being haha. But based on my price forecasts, its not likely to happen unless SPY can sizeably gap down before open to like 334.
stein3d
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@Steversteves, Agree with this, looking like a bullish breakout will form to maybe mid-440s at least on the 4-hr chart. If it decides to take out that down-gap maybe as high as 446.60, I have a hard time believing buyers will find much traction above that level.
SJ_CAP
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@Steversteves, Interesting! It could definitely push higher, and approach that yellow trend line ( 445ish ). We will see!