$SPDR S&P 500 ETF Trust(SPY)$ $S&P 500(.SPX)$ πππ§ Mind the Gap, SPY Tiptoes into May 2023βs Abyss π§ππ
The S&P 500, $SPY $SPX, has erased all its gains! It is now trading where it was in August.
$SPY opened with a thud at $523.74 and has since cascaded over 5% intraday, bottoming at $508.32 so far, its sharpest single-day drop in months. Whatβs catching savvy tradersβ attention? The price has now entered the open gap left behind in May 2023, but make no mistake, this gap is far from filled.
Weβre witnessing a textbook example of a partial gap fill in progress, not a completed one. The high-volatility rejection from previous support zones suggests institutional capital flow is decisively risk-off today. The MACD confirms that bearish momentum is accelerating, while VMA stacks are now sharply tilted south, showing that gravity is doing more than just its job.
Zoom in on the chart and youβll see a clean breakdown below the 509 to 510 band, which was once solid ground. The ARBR indicates waning bullish confidence, and the relentless red candles tell us this isnβt just panic, itβs strategic selling.
For gap traders, this setup is classic, once a gap begins to fill, it often draws price action like a magnet, but completion is never guaranteed in a single move. The next few sessions will be pivotal. A strong bounce or continuation down could define sentiment well into next week.
Hey Tiger Traders, are you anticipating a full gap fill to the May 2023 lows, or will the bulls claw back control before the gap closes?
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Happy trading ahead! Cheers, BC πππππ
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as a newbie in this trading business I'm blown away π€― it's incredible what had happened in the last 3 days. If you ask me, it's planned (let me wear my tin foil hat)
I wouldn't take a position right now, what I will do is set 2 strategies, bullish and bearish, and action accordingly the premarket, support and resistance levels on Monday
good luck and happy trading ππ
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Great article, would you like to share it?