$SPY TOP 20

Back to our regular daily $SPY chart now.

The large 0.236 White Fib got tested today ar $550, this also marked -10% decline since the potential top at $613.

A -10% pull back is officially called a correction, what is most remarkable about this is that it only 4 weeks to complete....so this has been quite fast, harsh and uncomfortable for many.

Because when the market declines -10%, it means that many vulnerable positions have declined -40% to -50% too, typically positions that were overvalued or had weaker fundamentals.

Ideally we need a support level here to offer some relief next

The 50 Day MA, the 200 Day MA and the 50 Weekly MA have all be lost now....so this is weakness, this is clear.

And what's different now is that CPI or PPI did not help relieve the market, which typically happens.....so we are likely seeing the market react to Trumps policies which often get announced spontaneously throughout the day and get flipped back and forth very quickly too.

Trumps approach appears to be, shoot first and then ask questions....so there is a shock and awe approach and then he negotiates....this may have worked in a boardroom and behind closed doors.....but it is a different animal now when the market reacts to your every word

Something I hope Trump becomes aware of very quickly (unless he deliberately wants to correct the market further)

If $550 can offer support going into tomorrow and next week then we could see a retest of the 200 Day MA next at $572....AND THIS TELLS US EVERYTHING WE NEED TO KNOW

I have said this multiple times now

A RETEST WILL TELL US:

IF THERE IS A REJECTION AT THE 200 DAY MA

OR

IF THE 200 DAY MA CAN GET FLIPPED BACK TO SUPPORT.

A REJECTION AND THE MARKET IS IN WAVE A FOR ME (THE ABC CORRECTION)

A RECAPTURE OF THE 200 DAY MA THEN YES THE MELT UP LEVEL IS STILL IN PLAY.

None of this is new information, many people will still ask for clarification on this in the chat groups and honestly it is exhausting, so any further questions will simply be referred back to this chart and commentary.

I will continue to do updates like this and guide you every day, so you are fully aware of where the market is

I understand that in spite of us calling this possibility happening early, it still does not make things easier at times.

When a retest happens, we will have further clarification.