$SPY Strong support, but strong resistance too...

Hello Traders,

I hope you had a great day. Today we saw an interesting sentiment shift as soon as AAPL started falling off; with news of an iPhone supply shortage guidance adjustment, the supply chain and and inflation worries took over.
The interesting thing about inflation is that it's partially psychological. When we see rising prices or missing things on the shelf, we think the worst, and it's almost self fulfilling with our collective reaction; causing risk-off, bond buying, and a ripple across the markets. Do I think supply bottlenecks from the pandemic matter? Of course. Do I also think just about everyone who wants an iPhone will wait to get their iPhone... Also yes. Just like some demand was pulled forward from the pandemic, other demand will be pushed backward.

So, where are we going next?
Well, that's a tricky question, the pulse of the markets have been a little tough to pinpoint. I've boxed on the attached chart, where I think we churn in the short term. It appears that we are literally sitting right around the Strongest Support and the Strongest Resistance on this chart (notice the POC for several periods). Therefore, we will likely need to either churn it out till it weakens S/R and we breakout... Or we see a strong catalyst in one or the other direction...

I do see some signs of the bull's returning, but we shall see.
Please leave some feedback and hit the like/follow.

Cheers,
Mike

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Ended up gapping up over resistance after hitting it a few times. 2 strong gap-ups over resistance in 2 days. After hour trading clearly likes what they're seeing in the US markets. Pretty safe to say the Bulls are grabbing the markets back and ramming it higher.