SPY's 'Downside Door' Opens: A 10-15% Drop Could Be Next

Money Making Market
10-15% drop
SPY Downside Risk Scenario
Below $606
QQQ Key Breakdown Level
$242.35 - $252.89
IWM Daily Expected Move Range

In a critical 25-minute analysis from Money Making Market, a major technical shift has been identified that could define market direction for weeks to come. The video reveals that a key 'downside door' has opened for the SPY, with the RSI break signaling potential for a significant correction. While the weekly chart remains structurally bullish, the immediate risk on the 2-hour chart is severe: any failure to make new highs could trigger a rapid move toward the monthly expected move, with scenarios pointing to a 10-15% decline. The analysis also highlights the relative weakness in QQQ and a concerning breakdown in IWM that could be forming the right shoulder of a larger pattern. The full report details the exact MACD and price levels to watch for confirmation, the specific 'gates' that must hold to prevent a deeper selloff, and how options markets are already pricing in moves for 2026...

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A pivotal technical shift has occurred, with the RSI break opening a 'downside door' for the SPY. The analysis calculates the daily and monthly expected move ranges, identifying the precise zone where price is currently testing for support or breakdown.

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The video outlines a clear bullish path requiring a swift 2-hour chart trend reversal and a direct run to new all-time highs. However, it contrasts this with a dominant bearish scenario where failure leads to a test of the monthly expected move and potentially much lower levels. Volatility analysis currently favors the bigger correction scenarios.

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Critical warnings are issued for QQQ, identified as the weakest major index, and IWM, which has broken a key daily level. The report stresses that any MACD rollover on the 2-hour chart before new highs are made significantly raises the probability of a sharp decline, with specific downside targets outlined for each index.

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