SPY (Notes)

Good morning everyone! This is a quick post for my notes and not an article.

In yesterday's article I mentioned the important levels to watch, as well as my thoughts about the potential drop / change in direction zone. Well, yesterday we closed lower than the first drop level and are currently retesting the second, more significant, level.

If you haven't read that article you can read that here

If the market breaks below $539.45, there is a bullish gap from $537.01 - $539.24 with minimal, if any, support from the buyers which could mean the gap gets filed with selling volume.

In other words, be careful trading in Markets. Full transparency, I did open some swing calls for today, however I am currently experiencing a loss in that trade. This could be the Market's attempt to form the head part of a possible Inverse Head and Shoulders which might look something like this.

Obviously it will not look exactly like this if it playes out, but you know what I mean.

I have seen this play out hundreds of times, but this volume suggests it might not play out so easily or at all so I am only 60% confident that it could occur. I will be waiting for a more significant level such as the $532.65 Weekly level I mentioned which would be the final level before the $524.54 level on the SPY which is again a level which inbetween has minimal buyer support.

With that said, please be careful in Markets. over $1.1 Trillion in value was wiped out from the US Stock Market yesterday with crypto not far behind, considering the cryptomarkets weight and size, liquidating nearly $100 million as well. In fact, yesterday was the largest selloff in Markets since 2022.

Eventhough I am in the red today, I hope everyone else makes some money and please be careful trading. Just because you make or lose some money, does not mean you need to take another trade. Don't be afraid of not making enough money or any money because the markets open alllllll week.

If you would like more notes like these, let me know by dropping a like or leaving a comment. I am always open to answering any questions if they aren't like "what should I buy" hahaha.

Thank you for reading and enjoy your day in the Market