Outlook for Monday - SPY

Finally made an account after lurking through posts, here are my thoughts:

SPY recently dropped overnight, but the most likely move is a rebound back into the 680 range. A retest of 685 makes sense because that level acted as strong resistance last week, and price usually revisits recent resistance before choosing direction. If we fail to hold that area, consolidation in the mid-680s is expected before any pullback. If the selling pressure keeps up tomorrow, the next clean downside target is 675 since that’s the nearest demand zone with solid volume support.

Powell is unlikely to resign IMO, but any mention of rate cuts can shift sentiment for December. Most Fed members have been putting more weight on labor data lately, which supports the idea of a softer stance. If Powell leans toward easing, it helps SPY stay above 680. If he signals tighter conditions, then the market could price in slower growth, opening the door for sub-675 by Wednesday.

Even with the short-term volatility, I’m still leaning bullish for an end-of-year rally. Seasonality, strong consumer spending, and improving rate expectations all support the odds of another push higher into late December.