SPY WILL double-test 405
SPY is an ETF which is heavily weighted by AAPL (5%). My charts show that we are in a descending channel (1hr chart) that is has hit heavy Resistance around 418 (charted). It is too late to buy options (short term) as the IV (premium) has shot up. There was 2 chances to load up on Puts which were both around 416-417 - stop-loss should be the SECOND (4hr) candle that closes above the descending channel. Right now we are trying to determine if the WHOLE market will become bearish, usually signified by, something generally called a bearish cross (dont worry about that right now).
Right now we are sitting on a Support/Resistance level (410-412 charted) but it does not seem that this will hold AT ALL - no reason we should bounce here. The exits look to be 405 support/resistance, 397-400, or lower is 350ish (interesting to watch). We will see, at minimum, small bounces at the S/R levels on the chart (give-or-take).
SPY is the hardest to move so when this moves we could see massive movement in less liquid assets. TSLA has the most liquid volume atm so it is a very good indicator of where the market is going.
This should give a good picture of what is going on in the market. If we break down below the S/R levels we could go into a major bear market. Major bear markets DO NOT signify a straight drop. THERE WILL BE TIMES WHERE A BOUNCE UPWARDS HAPPENS - IT IS IMPERATIVE TO FIND THE ENTRY ON THESE PLAYS.
Right now we are sitting on a Support/Resistance level (410-412 charted) but it does not seem that this will hold AT ALL - no reason we should bounce here. The exits look to be 405 support/resistance, 397-400, or lower is 350ish (interesting to watch). We will see, at minimum, small bounces at the S/R levels on the chart (give-or-take).
SPY is the hardest to move so when this moves we could see massive movement in less liquid assets. TSLA has the most liquid volume atm so it is a very good indicator of where the market is going.
This should give a good picture of what is going on in the market. If we break down below the S/R levels we could go into a major bear market. Major bear markets DO NOT signify a straight drop. THERE WILL BE TIMES WHERE A BOUNCE UPWARDS HAPPENS - IT IS IMPERATIVE TO FIND THE ENTRY ON THESE PLAYS.
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