The SPY has officially reached our upside target of 672, just as projected in last week’s Market Minute. That level now acts as a key resistance zone, temporarily halting the rally and forcing the market to pull back toward short-term support.
Why the 672 Level Matters
The 672 area has drawn plenty of attention. It aligns with previous extension targets from the recent move higher. Often, this is where buyers begin taking profits and momentum starts to cool. For now, that ceiling is holding strong and limiting further upside.
Two Scenarios to Watch
1. A Healthy Pullback
If resistance continues to hold, we could see a short-term pullback toward the 20-period moving average. This type of retracement often helps reset overbought conditions and prepares the market for another possible push higher.
2. A Breakout Attempt
However, if buyers regain control and push through 672 with strong volume, another wave of bullish momentum could follow. A confirmed breakout would signal that the bulls remain in charge, potentially driving the next phase of the rally.
The Takeaway
Markets often pause after hitting major technical targets. Whether this becomes a brief dip or a deeper correction depends on how SPY reacts near this level in the coming sessions.
For now, traders should stay patient and focus on key support zones. Wait for price confirmation before taking new positions.
🎥 Watch this week’s Market Minute for the full technical breakdown and what we’re watching next.