S&P 500 Bearish Reversal or New Highs Incoming?

SPY is opening in a position of weakness after failing to hold the 679.46 close, our 675 puts should print excellent profits in the morning with overnight pressure pushing price into the 673 area.

The immediate focus is whether price can reclaim the 676 to 679 supply zone, which previously acted as a breakdown region. If price pushes into that range and finds acceptance above 679, it opens the path for a recovery move toward 682 and potentially 686 where prior consolidation formed.

However, failure to reclaim 676 on early attempts, especially with weak volume, suggests sellers are still in control and rallies should be viewed as opportunities for downside continuation rather than trend reversal. On the downside, 672 is the first critical level as it aligns with our prior target zone and recent reaction area.

A clean break and acceptance below 672 increases the probability of continuation toward 668, which remains a major pivot tied to the broader .618 structure. If 668 fails, the move can accelerate quickly into 663 and then 655, where larger timeframe buyers are more likely to respond.

The highest probability setup is to remain patient at open, let the first 30 to 45 minutes define direction, and then engage either on rejection at 676 to 679 for puts or confirmed breakdown below 672 targeting 668 and lower