SPY looking to top out

Wow we really busted a move in the last month.

I think it may be time for us to cool off now that we have reclaimed 60% of the losses from the all time high and the indicators are showing every sign of being overbought.
We have this really wide ascending & broadening wedge that we have been riding up towards the top off for the last month. I have this drawn in blue.

There are 3 sections I feel are important:

Yellow: Ranges from 429-437 This is where I see us topping out. This is where we came down from our dip in September of 2021, It feels a bit poetic that we would be back here again just 1 year later. I am not expecting price to plummet from this point, but I do think resistance will be heavy.

Green: Ranges from 410-416 This is the middle of the wedge, I can definitely see a pull back to this area and I think it would be a place where buyers will try and push us back towards the yellow region if we do hit this.

Purple: This represents the support level towards the bottom of the wedge, we would need something external to force us down this far. A bad CPI print, employment data, Oil concerns. Its in the cards but I think it's unlikely that we will go this low.


Overall I think there is more room to the downside than the upside.
I will wait for some confirmation that the yellow region is the top before adding to my position, but It has definitely caught my eye this week.