October 20, 2022, 10:37 pm EDT
Key Level 365 (SPY)
S&P 500 ETF (SPY) broke the 365 level about a month ago. Then, it swings in both directions for almost a month without progress.
It is important to note that 365 is critical for SPY to hold in order to avoid another major downtrend. S&P is so far away from the upper bound of the 430 level. Thus, the bias is obviously bearish.
There is much noise from earnings and politics which may confuse market participants regarding market bias. Daily up-down fluctuation also could change a trader’s mind. However, technical analysis on this chart should give us a clear direction and set up our strategy accordingly.
Currently, S&P is at high risk of breakdown. Once it happens to slash through 365 with high volume, it would bring up downside momentum for a new low and downtrend. Moving around at 365 is also not a good sign. S&P needs to carry around 430 to feel a little bullish bias. At this moment, it seems very unlikely to happen.
