SPY Correction! Bearish Volume Divergence

The chart shows a decrease in volume over the past 6 trading days as SPY has surged to ATH's. I think not only is the market due for a correction but SPY/QQQ are demonstrating similar charts. Today I will be looking to enter some 2/19 386 Puts today. I will be looking for a possible bounce in the 388 range and if that fails then I think we see lower. If we bounce at 388 and reclaim 390 I will be out. As a swing trade I would like to see us gravitate to the LVN at 385/384 range.

*Past 4 days of volume show two bearish days that each have more volume than the two bullish day. Something to keep an eye on, will be watching today's volume.

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Big bullish push this morning but looks to be stalling out. Watch the 1hour SMA that has served as support. Close below and I will add to my SPY put swings.

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Never closed below 1h 20 SMA so did not enter, had a few sell-offs but no follow thorough. Still holding 2/19 389 puts at $3.33. Will watch to see volume the rest of the afternoon.

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swung my spy puts over night and sold some for a profit. added some 2/17 389's will swing these depending on action today. I think today's close will tell us a lot, we already have over 28million in volume and we're only halfway. If we close green after all the selling I think the bulls will take us higher into the rest of the week.

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SPY is showing a nice triangle pattern on the 1h chart. With the past two days of consolidation and selling we're either gearing up for another bull leg or will break lower to 388 range and then maybe 384ish. I think SPY will probably test the 100 SMA seen in red below today so I will use that as a pivot point to sell puts.

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Beautiful breakout by SPY. The two bearish days on the 10th and 11th were able to hold above 390 both days. Will be an interesting month with stimulus supposed to be finished within a month or so. $384 is still my first target for a market correction whenever that occurs. Lets hope SPY continues its strength the rest of this week.

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Still watching the Daily volume on SPY for this week. Had a bullish day on Friday but today has been a big sell-off all morning so far. if bearish volume continues to be strong as it was last Wednesday and Thursday I will look to hedge again.

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I am going to be watching SPY closely into the end of this week. The recent volume on the Daily chart is directionally bearish even though we managed to continue higher the end of last week. Let's see if this is signaling the retest of $384

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Watching SPY this morning to see if we sell off to retest 388 area or if we start to bounce. ES futures look better this morning after breaking below 3900. if we can reclaim 392 I think we turn bullish. will be eyeing some SPY puts at open if the market is weak. I would expect a bounce on the 200 SMA if we reach those levels.

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$384 looks to be a strong support for SPY, let's see if we end up heading there this week. Futures look better but looks just to be consolidation before another leg down.

Trade closed manually

SPY broke to $384 and even touched $380 lvl on the big sell-off.

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