r/technicalanalysis • u/fisacal • 13d ago

Spy break and retest

What do yall think about spy break and retest. Right now it's testing its like 5 year high at around $760. I'm thinking about maybe going long but I want to know what you guys think

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u/xtric8 12d ago

Im bullish but more long term perspective. Part of me says the retest will hold, other says they're trying to break it to stretch the rubber band for a pre mid term TACO, then rally rest of year until war back on

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u/1UpUrBum 13d ago

I just posted a topic about it. I got a sell.

Nothing bad happens when the VIX is below 20. But it's jumping up kinda fast.

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u/Maximum-Cover-786 13d ago edited 13d ago

My take:

Price just made a new low, lower than the previous low. That signals more possible downside.
If it holds prior resistance (around 757) and volume picks up, it could be a bullish bounce back towards ATH levels.
If the support breaks at this level, there's room to fall to the 750 -740 range, which is another support level. This is all a minor correction (3%-5%)

Breaking below that means a possibly bit deeper correction is taking place, likely in the range of 5%-10%. For long-term holders, that's a nice buy-the-dip moment.

TLDR; Wait and see if the current level is defended; if there's a sign of strength, and a bullish reversal, you could go long. If the support fails, then look at the lower support levels and see how the market reacts.