March 16th, 2023
On Monday we found a DP transaction at 385.90, and after a couple of sessions, we have held above it and can confirm it was a DP buy. Markets appear to be supported, temporarily over this 385.90 level. Today we briefly went below but then saw a large rally back up to 389. SPY 0.00 currently finds itself in a range between 385.90 and 393 (most recent DP buy and DP sell region).
Looking at this chart there are a few things to pay attention to. Clearly we had a head & shoulders which played out and fire down into the bear market trendline. Now we are consolidating in a bear pennant. This bear pennant has a measured move of $360 if it fires to the downside or 422.23 if it is invalidated by the bulls.
There has been alot of put activity for MAR 24. This coincides with resolution of the bear pennant, which should happen between 3/20-3/27.
The same levels will continue to guide us, likely for the next several sessions
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