I know this is a little bit of a messy chart. Alot of trend lines and yellow rectangles-
Here is the breakdown and outlook for SPY leading into the weekend and next week-
I am anticipating a small correction this morning that will lead us to Pre market gap fill with a target of 426.44. This will achieve gap fill and trendline support (Green box for reference)
From there, i will be looking for confirmation of strength and bounce and will enter a long position (Put Credit Spreads likely) where my next bullish target will be 437.10. This is my breakout target for the massive triangle we have seen (we can see part of it in the chart) AND it is a gap level that will be filled once hit. (Purple box for reference)
There is a much larger gap towards the bottom of the chart. I do anticipate us to fill this gap at some point in time. However, generally when there is a large trend reversal, we almost always leave a gap for us to come back and respect.
Here is the breakdown and outlook for SPY leading into the weekend and next week-
I am anticipating a small correction this morning that will lead us to Pre market gap fill with a target of 426.44. This will achieve gap fill and trendline support (Green box for reference)
From there, i will be looking for confirmation of strength and bounce and will enter a long position (Put Credit Spreads likely) where my next bullish target will be 437.10. This is my breakout target for the massive triangle we have seen (we can see part of it in the chart) AND it is a gap level that will be filled once hit. (Purple box for reference)
There is a much larger gap towards the bottom of the chart. I do anticipate us to fill this gap at some point in time. However, generally when there is a large trend reversal, we almost always leave a gap for us to come back and respect.
PG13