SPY is approaching the absolute roof of a resistance line in this downtrend that started at the beginning of this year. It still has about 2% more to go before it reaches its apex, then most likely rejects off the resistance line and sees lows down ~18% in the 330s area. Most likely, this rally stalls out in the coming weeks, and SPY sees another leg down as planned.
If not, SPY can see a continuation of this rally, in line with the possibility of changes in Fed sentiment. SPY needs to get above the 410 level, then possibly retest of old resistance line as new support, before testing previous highs. The more likely outcome is market capitulates and rejection comes soon, within the next few weeks.
If not, SPY can see a continuation of this rally, in line with the possibility of changes in Fed sentiment. SPY needs to get above the 410 level, then possibly retest of old resistance line as new support, before testing previous highs. The more likely outcome is market capitulates and rejection comes soon, within the next few weeks.