SPY Weak Below Key SMAs as Rate-Cut Odds Collapse
This $SPDR S&P 500 ETF Trust(SPY)$ chart explains everything.
Right now, sentiment is bad because FEDS are unsure of rate cuts in December. They were 95% sure they would cut rates, but now they are 50% sure.
SPY sits below 20SMA (red line) and 50SMA (green line) right now. Both signs of weakness.
SPY doesn't like to sit under 50SMA too long. Last time it went other it bounced for 4 days straight from $661-$684. SPY demand zone right now is at $661-$662 area again. So I'd be patient and watch for buyers on 1HR and 4HR time frames.
We could go lower to $653 (40% chance).
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