SPY Trade Review – Potential Pop and Flop SetupI’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!
