SPY Oct 7 – Bulls Defending the Channel! Watch $672 for Confirm

15-Min Chart Analysis (Intraday Trading Setup):


SPY is holding a clean ascending channel structure, consolidating near $670.66 after a mild pullback from the upper resistance zone around $672.50. This intraday pattern shows controlled bullish momentum with shallow retracements — a healthy signal for trend continuation if buyers hold the lower channel.
The MACD is cooling off with red histogram bars, indicating a short-term correction phase rather than full reversal. Stoch RSI near 17 suggests oversold territory, implying potential for a bounce from lower trendline support around $669–$670.
If SPY defends $669, it sets up a possible intraday rebound toward $672.50–$674.00. A breakout above $674 could trigger momentum buying toward $676–$678, completing the next leg of the channel.
However, if SPY loses $668 with volume, it may retest $665–$664 where the next liquidity and minor gamma support reside.

1-Hour GEX Confirmation (Options Sentiment Insight):


The 1-hour GEX landscape reinforces this short-term bullish bias:
* Highest positive NETGEX / CALL wall sits at $674–$675, forming a strong gamma magnet above current price.
* Major PUT walls are clustered around $664–$665, providing sturdy downside defense.
* GEX distribution shows balanced positioning, with dealer exposure slightly net positive, suggesting controlled bullish momentum and lower volatility.
This alignment indicates a likely range expansion to the upside if SPY maintains the $669–$670 base. The gamma structure continues to compress volatility while gradually pulling price toward the $674–$675 region.

My Thoughts:
SPY remains technically constructive above $669, with buyers absorbing every minor dip inside the rising channel. The setup favors a continuation play rather than breakdown — unless there’s a high-volume rejection at $672.
A sustained reclaim above $672.50 would signal that bulls are ready to retest the gamma magnet zone at $674–$675. Conversely, breaking below $668 would be the first warning of weakness, especially if accompanied by rising volume and a MACD crossover.
Momentum and gamma both point to a slightly bullish-to-neutral environment — ideal for disciplined scalps and controlled call positions rather than aggressive swings.

Options Outlook (Oct 7–11):
* Bullish setup: Consider 672C or 675C (Oct 11 expiry) if price holds above $670 and reclaims $672.50 with bullish momentum.
* Bearish setup: Consider 668P if SPY breaks below $668 with confirmed volume spike and MACD crossover.
* IV insight: IVR 15.4, IVx 13.9 — both low, making options relatively cheap for directional trades this week.

Conclusion:
SPY’s trend remains orderly and bullish as long as $669 holds. Watch for a breakout above $672.50 to confirm a run toward $674–$676, with gamma levels acting as the next resistance. A drop below $668 would flip sentiment short-term bearish. Stay patient and let price action confirm the breakout direction.

Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading.