Peter Smith
⬤ The SPDR S&P 500 ETF Trust (SPY) is closing in on a critical technical zone after a rough stretch for index futures. S&P 500 futures were down nine points, adding to the technical damage already built up last week. Right now, the $686 level is acting as short-term resistance — and SPY is struggling to get back above it.
⬤ Looking at the chart, overhead resistance is stacked between roughly $691 and $697, while price is hovering near $681. As long as SPY stays under $686, the next stops to watch are the $680 area and then the $675 support zone — a pattern that mirrors what happened during the SPY pullback hits support near $678.
⬤ A break below $675 could open a phase of price discovery, pointing to technology stocks as a key internal driver. Sector leadership tends to matter a lot in these setups — when tech starts to lag, broader index stability usually follows. It's a dynamic worth keeping in mind, especially given what happened when SPY falls below the 50-day moving average.
⬤ The bigger picture is a market caught between defined resistance above and layered support below. How price reacts around these levels will likely determine whether SPY settles into a range or breaks down into a wider directional move. History shows that internal structure — what's happening beneath the surface — often tips the hand before the broader index moves, as seen in S&P 500 internal weakness beneath highs.
Peter Smith
