I’m tracking a potential pop and flop scenario forming on SPY. There’s a setup for a possible 5.5% move higher, followed by the opportunity for a larger short of up to 15% toward final downside targets.
SPY and its key influencers, including the Magnificent Seven, are currently rebounding off significant support levels. This could allow for continued upside before running into major resistance.
As highlighted in the chart, we may see a further push higher of approximately 5.5%, taking us into the weekly/daily high support lost zone at $564. If this level acts as firm resistance and price reverses, a break below $549.83 (our trigger for adding short exposure) could lead to a significant selloff.
Downside targets include:
- Target 1: $502
- Target 2: $476.30 (a potential new local low)
A daily or weekly close above $564.52 would invalidate this short setup.
This is a high time frame setup, but I’ve shown it on the 4-hour chart for greater clarity. Now we wait and see!
SPY and its key influencers, including the Magnificent Seven, are currently rebounding off significant support levels. This could allow for continued upside before running into major resistance.
As highlighted in the chart, we may see a further push higher of approximately 5.5%, taking us into the weekly/daily high support lost zone at $564. If this level acts as firm resistance and price reverses, a break below $549.83 (our trigger for adding short exposure) could lead to a significant selloff.
Downside targets include:
- Target 1: $502
- Target 2: $476.30 (a potential new local low)
A daily or weekly close above $564.52 would invalidate this short setup.
This is a high time frame setup, but I’ve shown it on the 4-hour chart for greater clarity. Now we wait and see!
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All content provided by Vici Trading Solutions is for info & educational purposes only. Past performance does not guarantee future results.
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.
Get access to our exclusive tools, & Join our community: bit.ly/m/ViciTradingSolutions
All content provided by Vici Trading Solutions is for info & educational purposes only. Past performance does not guarantee future results.
All content provided by Vici Trading Solutions is for info & educational purposes only. Past performance does not guarantee future results.
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.