SPY (For Followers + Public + MooMoo Shoutout)

Good morning everyone! I hope you are all enjoying your week so far and are gearing up for another Friday in the Market.

Thank you for all support on the previous two articles, I am incredibly greatful for your patience with me as my work schedule is incredibly packed and sometimes does not allow me to write an article the way that I want to. Your likes, comments, and shares motivate me to work harder to get everything done and work even harder on my articles in the Market. I appreciate you all!

If you haven't read the articles / notes, you can do so here

First Article / Notes: The Market (SPY Significant Zone Level)

Second Article / Notes: SPY (Notes)

With that said, this post is another Notes article that I want to share with you all about the current patterns I am seeing on the SPY 1 Hour.

I mentioned in the first article I wrote this week that we are in a very significant possible drop / change of direction zone. I took a closer look at the charts and noticed a couple of things I think are important to take note of.

1. Change of Character

SPY (For Followers + Public + MooMoo Shoutout)

The SPY is currently printing a large Change of Character (CHoCH) that is beginning to form the first Break of Structure (BoS) to the sell side from the inital Fair Value Gap we noticed on the 1 Hour in the first article. Should the downside trend begin and take a larger shape, there is another CHoCH a bit lower than it which could form the second BoS (area of put buyer interest).

CHoCH Levels:

1. $541.71

2. $535.90

The second CHoCH is an area of previous resistance turned support. If the sellers break through this level, then the price action could get ugly.

2. Its So Over

Down there at the $523.51 level, the Market will be at it's last leg before offically suggesting that there could be a new bear market off the All Time Highs. The reason why $523.51 is significant as it is one of the only larger areas of resistance turned support up here in the $500s as Markets have never seen this price historically.

It is also an area where the Market initially began to turn bearish, however buyers stepped in and saved the Market. $523.51 is on the right hand side of the standard diviation.

$520 is far more significant. If you were in Markets last year when the SPY was testing the $420s, you might remember the significance of the 20's level.

Let me show you.

Highlighted in purple is the $420 range. A VERY significant range which first acted as support, but turned resistance for MONTHS.

How did we get out of the $420s?

AI.

Take a look at the $320s.

Without making a mark on the chart, I bet you can guess where the 320's stepped in.

Think about it like this in terms of significance relative to potential volatility.

550's, traders started selling and the firt gap down appeared. Buyers tried stepping in but could not find initial support. Lots of realized potential volatility.

520's, the most significant level, traders know that if the market sells down from here it could get worse. There are buyers here not coincidentally. Markets have a higher potential to see less volatility at this level. I expect some sideways price action or retests of this level from both sides before a larger move is made.

490's, the market already sold off and now there is a potential increase in volatility for a retest of the 500s. Buyers know if the $490s break, the Market could get moving. They MUST support the $500 level.

The 523's have enough volatility to make either a move off to the $520 level, or off of the $520 level. That move has yet to be realized.

MY POINT:

The 520's is an extremely significant range, with $523 being the best median between direction and sideways price action potential. So if we break through the Its So Over line then Markets could make a leap for the 500s with volatility.

I hope that makes sense hahaha. Food for thought. I could be entirly wrong, but this is what the levels on the chart tell me. I apologize for my sloppy mouse handwriting.

If you looked at the charts I have posted so far, I bet you can guess what I am going to say next.

3. Head And Shoulders

There is a possible Head and Shoulders forming on the SPY 1 Hour. This is a very significant Head and Shoulders as the head portion is at the All Time Highs, the neckline is at / near an area of extreme volatility and rejection from the upside, and the shoulder line is at one of the only areas of larger support up here in the 500s.

Both points I have elaboated their significance about in prior bullet points.

TLDR:

BUYERS NEED TO STEP IN NOW LOL

Disclamer:

These notes are my comprised of my own research, thoughts, and prior trading knowledge. Therefore, nothing is 100% certain. I COULD BE ENTIRLEY WRONG. So please do your own research, consult your financial advisor before entering the Market, and assess your personal finances before you EVEN THINK of taking a trade.

Conclusion

In all honesty, I hope I am wrong. I don't want to see Markets reverse to the lows. A lot of people depend on the Market moving to the upside for their retirement, portfolios, and more.

However, when it comes to the 520's, I am confident in their significance. If we get down there, I will be paying close attention to the charts.

Thank you so much for reading this Article / Notes post. I know it was a lot of seemingly brain-numbing junk that I just rambled, however I stand by my research and I am perfectly okay with being wrong about my charts. I enjoy being wrong in this manner, as it provides me the opportunity to continue to grow my knowledge in Markets with a new perspective.

That said, to close off I want to thank @Team moomoo for the shoutout!