S&P 500 Prints Shooting Star Candle -Can Bulls Push Higher?

SPY printed a shooting star candlestick Friday and closed near 720.65 after pressing into the upper channel and testing the 724.87 resistance zone. The structure remains bullish while price holds above the rising short-term channel, but this is not an ideal place to chase new calls because RSI is already elevated around 71.4 and price is pushing into upper-channel resistance. The key upside trigger is a clean break and hold above 722.19.

If SPY can hold above that level, the next upside targets are 725, then 728-730 near the top of the larger channel. Above 730, the rally can start extending into a price discorvery overshoot, but bulls need price action to hold above 722 first.

The first bearish warning comes if SPY loses 714, then the more important breakdown trigger is below 706-708, which is the lower edge of the recent rising channel. If that breaks, the first downside target is 698.03, followed by the prior breakout/neckline zone near 696.47-698.

A deeper pullback into 675-676 would only become realistic if SPY loses the former breakout zone and starts holding back below 696. For now, the clean plan is simple: bullish above 722.19 with targets 725, 728, and 730; cautious below 714; bearish below 706-708 with targets 698, 696, and then 675-676 if the breakout fully fails.