If SPY holds $750–$744 and buyers return, I would watch for:
1. Reclaiming $761.33.
2. Breaking $766.94.
3. Testing $772.43.
4. Eventually retesting $781.62.
Election uncertainty could create short-term volatility, but historical patterns favor a recovery after the election. These historical averages are not guarantees, particularly given current technology-sector valuation concerns.
I believe SPY has a reasonable chance to retest $781.62 in November, but Friday's unusually heavy selling means the market needs to prove buyers are returning.
For options trading, I would rather wait for confirmation around $761 and $767 than chase calls immediately after a sharp selloff.
For your SPY technical-analysis approach, I would monitor:
- Daily 9 EMA crossing above the 21 EMA: bullish confirmation.
- Daily close reclaiming the 50-day moving average: additional confirmation.
- Increasing volume on bullish candles: evidence of stronger buying.
- RSI recovering above 50: improving momentum.
- A daily close below $744: warning that the correction may be extending
1. Reclaiming $761.33.
2. Breaking $766.94.
3. Testing $772.43.
4. Eventually retesting $781.62.
Election uncertainty could create sho...