S&P, Down in Pre-Market

The last update on the SPY said this:

“The SPY shows a nascent reversal. Price could come back to test resistance (black line) or continue to decline from here.”

That’s what it did. Price came back to test.

It’s early in the pre-market and SPY is showing a slightly lower open; currently down -1.29 points, or about -0.32%.

Thrust energy on the test was low. There’s potential for continued down action from here.

Recall that last week’s price bar was a reversal. A new weekly low would help confirm there’s more (sustained) downside ahead.

The ‘project’ is already short real estate via DRV (not advice, not a recommendation). If it follows suit, downward action in IYR can be expected.

Charts by StockCharts

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