$SPY Penalty Box Ensues

1 Şub 2022

I refer to the yellow highlighted area as the penalty box. This seems to be an area of indecision with pockets of support and resistance. A lot has been going on in this area. As of the close today we're back testing resistance at $453.19. The intra day high eclipsed that level briefly but resistance has not yet flipped to support. On the bullish front, the rally suggested by the follow through day seems to be intact and price is back over the VWAP of the penalty box. There's a lot of resistance still ahead though. Volume while still above average has been declining the last few days, the index is still below the 20 Day SMA and the 50 Day SMA and the price is still in the penalty box. If the indexes are going to see more selling this would be a logical area. A clear breakout of the penalty box would be bullish AF IMO. LOL.