Short Term Bullish Trend before correctionThis chart is from last Aug to this Aug. Last Aug SPY went up to break the upper trend line till Sep 3rd with similar low volume but from Sep 3rd it went to a correction of 10% -11%.
This year we are in a similar setup, SPY pushing higher with low volume and the upper trend line is about to break we could see SPY hit around 460+ by Sep first week before we see a correction of 10-11%
SPY had the support of 125MA last Aug so this time it might get support around 125MA which sits around 414 which is approx 10% down from 460spy level, but if that doesn't hold this it could turn into a nasty correction which could drag on to all Sept and Oct.
IF you note, then you will see RSI is not yet reached a peak level so there is room for RSI that is also a reason in the short term SPY could keep on pushing plus in options market PUT ratio is at an all-time high and ppl are shorting SPY which could create a short squeeze that could push the SPY to a blow of top.
So in Summary - SPY in short term could hit around 460+ or - around the end of Aug or first week of Sept from there it will have a pull back of 10-11% which is around 414 level.
