SPY Charts 5/17 The Market Rout Is On

The stock market is bleeding out and it seems there are not doctors on call.  We are experiencing fear in the market and most everyone is selling.  The SPY Chart continues to break support level after support level and today we are at a critical support level of $130.  When these support levels break the drop happens pretty quickly so you need to be prepared either to get out of bullish trades quickly or plan on short bearish trades.



As we can see this fear is a self inforcing cycle and the VIX shows this graphically really well.



So what are we to expect in the next couple of weeks.  I think there is going to be a rally coming soon.  The order of things could happend like this

SPY break support at $130 and then trades down to $127 and then rallies but would find resistance at $130 or $134.

OR

SPY holds support at $130 rallies betweem $135 to $137 and fails to make a higher high then falls lower.

What I have been doing is waiting patiently for a rally as most things are really oversold most of the bearish trades that I have been in I am starting to exit as we maybe reaching short term support. We will see how tomorrow goes because it could get bumpy again.


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Disclaimer: This article is intended to be informative and should not be construed as personalized advice as it does not take into account your specific situation or objectives