I SPY with my little eyes...
Okay, looking back the 200 Weekly MA is a pretty strong support level for the SPY. The last time such support was breached was the 2008 recession. The big question is not really if we will bounce (as we already obviously have), but if the bounce will be sustained. Overall, I think the bounce will fail around the high 250s to 260, because there is a lot of previous support turned resistance. I'm much more confident that this correction will be much greater than the 2011 one, where the SPY rallied off its 200 W MA. Again, watching this level is key. Nothing goes up and down forever, and it's important to have as little bias in reading the chart as possible. I could be wrong of course, but I still think equities are bound for a much greater correction than what we have just witnessed. I'm a strong short at 260 if price gets there.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.