SPY - Weekly Review Feb 25 - Mar 01

The chart from Feb 25 showed the support and resistance zones for SPY for the coming week (link in related ideas). SPY started the week with a gap up right into the red resistance zone but couldn’t hold and sold off after hitting the upper trend line. The next day it held on to the support 1 level identified on the chart and tried to run for the resistance zone but couldn’t. Started the Wednesday with a gap down but managed to close above the support 1 level and also above the lower trend line. On Thursday, it gapped down again and closed below both the support level and the lower trend line which looked quite bearish, but overnight price action was very bullish which resulted in a gap up today (Friday). Today was interesting. Gapped up in the red resistance zone, couldn’t hold, sold off first half of the day, bounced right from the support 1 level and managed to close the day above the lower trend line and right at the start of the red resistance zone. As expected, this red zone is going to be a troublesome area. Today’s candle looks to be a doji which means no body. Let’s see what next week brings.