After a brutal meltdown, there is a chance the SPDR S&P 500 ETF Trust (NYSE:SPY) is about to reverse.
The SPY has reached levels that have been support before. If these important levels are support again, a new uptrend may form.
Support is a large concentration of buyers who are looking to buy at, or close to, the same price. In this case, it’s $430.
See Also: Why The SPY Must Hold This Key Level To Avoid Disaster
At the end of September and in early October, when SPY fell to $430 there were enough buyers to absorb all of the shares the sellers had. This put an end to the sell-off and a rally followed. There’s a chance this happens again.
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