$SPY | Controlled Correction Before the Next Impulse

⚙️ SPY | Controlled Correction Before the Next Impulse

The market just rejected the 0.886 Fib (≈ $673) after months of consistent accumulation and trend extension.
This type of rejection usually signals the transition from a markup phase → corrective rebalancing, often aligning with institutional reallocation or short-term risk repricing.

Technical Overview

Current: $659.4 (rejection from $673)

Support Zone: $610 – $602 → 0.5–0.618 retracement zone

Macro Target: $719 – $747 → 1.236–1.382 Fib extension zone

Momentum: RSI rolling down from overbought; structure confirming controlled decline

Confluence:

50MA & 200MA convergence near $610

Previous breakout base at same zone (April–May support memory)

VolanX DSS Bias

🧭 Short-term: Bearish retracement toward $610 – $602
📈 Mid-term: Accumulation expected before a renewed impulse toward $719+
🧩 Long-term: Structure remains bullish unless we close below $585

Macro Outlook

A correction here isn’t a crash — it’s the necessary reloading before the next leg.
Liquidity sweep + sentiment reset → Q1 2026 could trigger the next cycle rally.
For now, the VolanX system tracks downside liquidity at $610 and $585 before upside recalibration.

Trading Insight

Bearish Play: Short / Put Spread 660→610 (30–45DTE)

Bullish Reversal Play: Long / Call Spread 680→720 (post-610 confirmation)

Risk Management: Maintain macro patience; scaling beats chasing.

VolanX DSS Outlook:

“Liquidity precedes expansion. Rebalancing now, rally later.”

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