SPY close analysis, 5/5/2023

2023年5月5日

Interest rate decision moved markets down to the 405 gap after what I found to be a VERY hard to trade price action reaction. Today we consolidated in a bear flag pattern with a gap above as clear resistance.

Clear the gap at 408 and its possible for bulls to recover. But for tomorrow (Friday) bears have a chance to show up again and break this back to the major psychological 400 barrier.

I find the short term bear case more likely and have drawn out my suspected outcome squiggles in blue down to the 400 zone.