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In a critical 22-minute analysis, Money Making Market outlines three stark scenarios for the S&P 500 (SPY), with the most probable path pointing to a continued bearish trend. The analysis reveals that the daily chart has broken below a key level, opening the door for further downside, while the 2-hour chart shows no reversal signals—no bullish MACD crossovers, no RSI divergences, and no higher lows. With the VIX stubbornly above 20, the high-volatility environment suggests any short-term bounce is likely to fail, setting the stage for a potential new low by early April. The report details a specific trading setup to watch for, centered on a 2-hour rally that could provide the perfect shorting opportunity before the next leg down. For the exact technical levels, the precise entry triggers, and the full breakdown of the three market scenarios...
The latest technical breakdown reveals a bearish shift for SPY, with the daily chart breaking critical support. The VIX holding above 20 confirms a high-volatility regime, making a full market recovery unlikely without a massive volatility crash.
The analysis presents a clear, high-probability trading scenario: watch for a 2-hour rally (potentially with a 30-minute divergence) as a potential setup. The anticipated failure of this bounce could signal the next major move down, with the report outlining the specific conditions for this bearish continuation pattern.
Major risks are highlighted, including the potential for a 'trap' low in early April and the danger of violent, premature short squeezes in the current environment. The most likely outcome is a brief respite followed by renewed selling pressure into mid-April, forming a classic head-and-shoulders 'right shoulder' failure.
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