The S&P 500 (SPY) is still printing a bearish weekly squeeze and was rejected at the daily 21 exponential moving average (EMA) on Friday.
For this weekly squeeze to fire short, the daily chart will need to break below the key level at $430. Until the SPY can break this level, this will be our line in the sand for the next flush to new lows.
In times when the market needs to crack through a key level of support or resistance, there tends to be many squeezes letting out energy.
The main focus for next week will be on the 4-hour squeeze as it is releasing a build-up of bearish momentum under key support. Be prepared as this release of energy could send the rest of the market to new lows.
In the video above, we’ll review the bigger picture trend and pick out spots wisely for potential shorts on names like IWM, AMZN, and SNAP.
Stay Focused!