Here's my SPY breakdown using top-down charting from the 1Hr and 15min timeframes.
On the 1Hr TF, there was a lower low (LL) created last Thursday around ($549.62). For the downtrend to continue, price needs to stay below ($564.02) to form a lower high (LH) and possibly go back to test that Thursday low.
Now switching to the 15min TF, you can see that the ($562 - $564) level was tested four times, and each time price rejected and pushed lower. But remember what happened Friday around 2 PM — price spiked to ($563.83), then sellers stepped in and brought it right back down.
So for Monday, if SPY gaps up over ($564), I’m looking to take calls for a push toward ($570 - $573) (just like the moves we saw on October 31 and November 5). But I would only scalp that move — personally, I wouldn’t be fully bullish unless SPY turns ($568 - $570) into support like it did back in November.
If SPY does not gap up ($564), then I expect more downside pressure with a possible re-test of that ($549.62) low.
This is just my opinion, make sure to chart it out yourself.
On the 1Hr TF, there was a lower low (LL) created last Thursday around ($549.62). For the downtrend to continue, price needs to stay below ($564.02) to form a lower high (LH) and possibly go back to test that Thursday low.
Now switching to the 15min TF, you can see that the ($562 - $564) level was tested four times, and each time price rejected and pushed lower. But remember what happened Friday around 2 PM — price spiked to ($563.83), then sellers stepped in and brought it right back down.
So for Monday, if SPY gaps up over ($564), I’m looking to take calls for a push toward ($570 - $573) (just like the moves we saw on October 31 and November 5). But I would only scalp that move — personally, I wouldn’t be fully bullish unless SPY turns ($568 - $570) into support like it did back in November.
If SPY does not gap up ($564), then I expect more downside pressure with a possible re-test of that ($549.62) low.
This is just my opinion, make sure to chart it out yourself.
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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.