SPY Approaching Major Resistance Zone

SPY has rallied sharply from its recent low, but it's now pressing into a critical resistance zone. Price is currently sitting just below a major unfilled gap between $539.54 and $548.94. Until this gap is filled and the market closes decisively above it, the broader downtrend remains intact and risk of a reversal is elevated.

Current Price Action:

• SPY has reclaimed $535.29, a short-term support that must hold if bulls are to maintain momentum.
  
• Price is hesitating under the gap, a common reaction area where sellers often defend.
  
• Moving averages are turning upward, indicating short-term strength, but we’re still below key longer-term resistance zones and the 200 EMA (not shown).
  

Downside Risk Levels If Rejected:

• $489.73 – minor horizontal support
  
• $481.80 – a prior low and key reference point for buyers
  
• $474.14 – structural support area from prior consolidation
  
• Extended targets: $454.29 and $426.80 if broader weakness resumes
  

Analysis: This area between $539–$549 is the battleground. If SPY can fill the gap and close above $549 with follow-through, that would be the first meaningful technical confirmation of a potential trend reversal.

However, failure to clear this level could open the door for a larger pullback. Watch price action and volume closely — a rejection here would indicate that sellers are still in control, at least in the medium term.

As always, be patient and let the chart confirm the direction. For now, SPY is at a decision point — one that will likely dictate the next leg in this market.