SPY close analysis 6/16/2023

SPY had a minor setback today almost closing on its low (bearish) and tapping the 20ema on my chart. With quad witching behind us, we should expect to see a bit more volatility and movement next week.

The pale yellow diagonal supply/demand zone I have on my chart has been long respected and I was surprised when price broke above it. Now that we're in it, I expect to see some more consolidation and reaction before we break out of it again.

Long term effect of the diagonal zone:


Expectation and outlook from here:
Neutral moves over next 1-2 days as oscillator bottoms and we regain fuel to power a move above the supply/demand zone. The March 2022 high at 454 is my next target. Key support is at 435 where breaking below offers bears an opportunity to follow through and move the market momentum significantly downward.

Enjoy your holiday on Monday.