SPY 15m Analysis: FVGs and Key Levels for Next MovesOverview
This idea focuses on the SPY 15-minute chart, highlighting key fair value gaps (FVGs) and critical support/resistance levels. The current price action shows potential for both bullish and bearish scenarios, contingent on price reactions at crucial levels.
Bearish Scenario
Key Level to Watch:
If SPY closes below 566.44, it signals further downside momentum. Traders should look for the formation of the next Bearish FVG to initiate short positions.
Projected Target:
First Target: 550–555 zone (likely demand zone or support area).
Downward momentum is supported by the recent sharp sell-off, indicating heavy selling pressure.
Invalidation:
A sustained move back above 588.85 will weaken bearish momentum.
Bullish Scenario
Key Level to Watch:
For any upward momentum, a Bullish FVG must form above the current price, likely in the 588.85–595.79 range.
Projected Target:
First Target: 595.79
Second Target: 600+, where stronger resistance may emerge.
Invalidation:
Failure to hold above 588.85 could result in further selling pressure.
Volume and Momentum Considerations
While individual candlestick volume isn't displayed, the rapid decline hints at increased selling pressure. Monitor volume closely during retests for confirmation of strength or weakness in price action.
Plan Your Trade:
Use clear invalidation levels to manage risk.
Wait for price confirmation (e.g., closing below 566.44 or a bullish FVG forming above 588.85).
Utilize stop-loss orders to safeguard against unexpected reversals.
Conclusion
This setup allows for flexibility, focusing on key zones and volume confirmation. The bias leans bearish, but a bullish retracement cannot be ruled out if price action shifts momentum. Keep an eye on FVG formations for entry signals.
