SPDR S&P 500 (SPY)

[Perseverance71]

At a quick glance it looks like a big drop is setting up here, but that's where technical analysis comes into play. 50sma 200sma cross matters a lot at this critical juncture on the chart.

The 50sma almost made it back above the 200sma on this strong bullish move off the march lows. I went back and based on whats happened in years prior, it's very likely to continue upwards after a further drop to the 50sma. I'm gonna buy calls if it drops below the 50sma. Look at this chart.