SPY: 5 critical levels that decide EVERYTHING this week.
Hereβs what matters:
1. $690β697 (Institutional Resistance)
If we get escalation (military response / Hormuz stays closed), this level likely rejects hard.
Only a de-escalation headline gets us acceptance above β squeeze to new highs.
2. $675 (50SMA)
This is the battleground.
War uncertainty = chop below.
Diplomacy signals = reclaim β bulls regain control.
3. $665 (200SMA)
Last line for trend structure.
If war escalates + oil spikes β lose this = trend flips bearish fast.
Hold this = market still pricing this as temporary.
4. $660 Gap (Exhaustion vs Breakaway)
This gap tells the truth:
β’ Escalation β gap becomes breakaway down (continuation lower)
β’ Peace β gap becomes exhaustion β reversal fuel higher
5. $630 (Institutional Support)
This is where BIG money defends.
Only reached if worst-case: prolonged war + 4%+ inflation fears.
Lose this... and weβre repricing the entire macro regime.
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