SPY close analysis, 3/23/2023

23 mar 2023

SPY opened today within my "interesting zone" — an area with substantial gaps up down/left/right and a place where I had no idea what to expect. For a moment, it looked like we might actually break out! But a swift and final rejection of this zone on the last 65m seals the deal for me to sum up a bearish thesis. All signs point to more down as we seek liquidity and support below. The natural stopping point is the confluence of old demand zones, a diagonal demand zone connecting the major bottoms since the low was set, and the long term peak resistance line dating back to the ATH. This makes too much sense not to call it.

In summary: Short SPY, target 387.6, invalidation above 400.