SPY consolidating sideways and testing lower channel

22
  • Closed below 50 dema on thursday, and opened&closed below 50dema on Friday(Bearish)
  • Close and low held above bottom trend line and 100 dema (Support still held)
  • 10 dma > 30dema, however gap is closing.


SPY is testing the lower channel.
I have placed an order for a short call spread 214/219 which as a delta position of .27 with 40 DTE

If SPY goes up ...
I expect the ATH to act as resistance (~213.75)

If SPY breaks above 214, I will still hold my position and sell another call spread.

I see 205 and 207 as areas of support. I believe if it breaks below the trend line, it will test 209 areas as resistance.
If SPY goes reaches down to ~207, I will sell a put spread.
And if it continues to 205, I will sell another put spread.



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