Futures are driving everything. S&P 500 ETF (NYSE:SPY) is the only ETF that tracks S&P 500 futures, not the S&P 500 cash index.
Now that we’ve got that clarified, we’re probably going to get a little bit of support around 1440 on S&P 500 futures. If this plays out the way I think, it would leave a beautiful-looking island reversal of the bearish type. But, as I show you on the chart in the video, it’s not going to go straight through. What that means, more or less, is we’re going to trade down to the gap.
Then something will occur and the next day, we should gap below the gap, leaving an island. That’s what it looks like to me is going to happen.
Check out the video for the specific trading area of this island reversal.
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