SPY Analysis: Descending Triangle Breaks Confirmed Broken As Resistance Holds

Bear Here, bull is gone for a while!

Our Pink Line from our post on Monday continues to be pretty accurate. There was a bit of a scare yesterday and today with SPY testing the bottom of the descending triangle that broke on Monday. Here was our chart from Monday, the breakdown happened earlier than we thought.

In summary, today’s price action in SPY has reaffirmed the resistance zone between 444.35 and 444.55, confirming the descending triangle pattern. The pink line is playing out. As we look ahead, the 435-430 basing level holds significance. Market dynamics can change rapidly, so it’s crucial to stay informed and adapt your trading or investment strategy accordingly in these uncertain times. This could be a good place to cover shorts given the chance of a bounce but below 432.50 is very weak, given the volume at this support level. This would be a place to add to shorts if it breaks. Overall, I believe (the bear), we fall another 4% – 5% to 417.50.

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