SPY: Bounce to $430 then Dump to $400SPY appears to be barreling towards the completion of a rug-pull event that kicked off back in March of this year. The downside target for this event is $399.88.
Although we ultimately place SPY hitting $399 in the near future as a high probability, we do see yet another rug-pull event that has taken place at the $429 price target on a smaller timeframe:
This is confluent with a weak bullish divergence that is appearing on the Daily chart. This supports the thesis that a bounce to the $430 area will occur before we ultimately sell-off down to $400.
Ultimately we see many bearish factors as we enter what is traditionally a bullish time of the year. See our related idea that dives into what we can expect from the VIX in the coming weeks:
Disclaimer:
Any information contained within this post does not constitute any financial, investment, or trading advice. Trade or invest at your own risk.
