here’s my 60 minute SPY with one possible scenario (although i still don’t have a strong opinion of the near-term direction of the market). keep in mind that i haven’t updated any of the support or resistance levels on this chart in a while and the “targets” you see (T1, T2) are the old short targets that were hit on the way down. however, that former T1 support level is now resistance and as you can see, this is the fourth attempt for prices to get thru that level since prices fell below it back in mid may.
although anything is possible, i favor another pullback from current levels and as such, have added some index shorts here. one potential scenario would be a pullback to the former T2 area ( which is once again support) to put in a right shoulder of a heads and shoulder pattern. again, my opinion is not very strong on the markets here and please don’t take the string of recent longs trade ideas as my being overly bullish. in fact, if i had to pick just one side to position on and walk away from the markets for a month or two right now it would be on the short side. i do still own some swing shorts that have been on for a while now, so of which are close to hitting one or more of the lower targets while i also have some longs right now. i did add some SDS to increase my short exposure here based on this chart but i may remove, or even add to that next week, depending on how things play out.