SPDR S&P 500 ETF Trust
Short

SPY's Final Wall: The Bearish Thesis

81
Right now, SPY is facing the most significant confluence of resistance trend lines it has seen in years. Think of this as the ultimate ceiling—a multi-layered wall that the bulls have to smash through.

The market's parabolic move has pushed the price to this critical point. But here's the thesis: the combined strength of these converging trend lines is just too much. The buying power is exhausted.

We believe this is a classic rollover setup. Instead of a breakout to new highs, we expect a strong rejection from this level. The price will hit this solid wall of resistance and turn over, leading to a significant pullback.

The current price isn't a simple pause; it's a test of strength that the bulls are likely to fail.

Day Trade/Swing Trade Idea: Short at red arrow and cover at the green arrow

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.