Will SPY hold 3500, a 50% Fib level from pandemic low to ATH?SPY as of today, like in the 2009 parallel in my post before this, also had a daily deathcross. Then price made a June low at 3636, bounced up to retest dma200(wma50) but was also rejected similar to 2009. SPY also gave up all gains & even broke below the June low.
Twinkle of HOPE: if entailment this week changes to positive, It is still possible that SPY may make a slightly lower low at around 3500 to create the divergence for an oversold bounce. 3500 happens to be the Fib 0.5 retracement from the pandemic low to January ATH.
BEARISH CASE: if 3500 will not hold, then the 312 to 320 zone will be the next support at Fib 0.618. Further waterfall will see 3000 & 2800 specially if wma50 crosses down wma200 (deathcross). Then probably the midterm election rally into new year.
Not trading advice. Proceed with extreme caution!
