SPY Opens AT Critical Structural Support

The first level the market must reclaim is 668, which previously acted as a key Fibonacci pivot. A recovery above this threshold would indicate that buyers remain active beneath the surface.

Should that occur, the next upside objectives would likely appear near 672, followed by the broken neckline region around 675.

Such moves are common following sharp overnight declines, as large gaps frequently trap traders positioned aggressively in one direction.

The second possibility, and what we must be prepared for, is a failure of the 660 support region & momentum selling.

If SPY opens near 661 and fails to hold above 660, the technical picture deteriorates quickly. A breakdown below this level would confirm that the market has violated both the prior swing lows and the final major Fibonacci retracement.

When support zones of this magnitude fail, liquidity often disappears rapidly as stop-loss orders cascade into the market.

In that event, the next significant downside objective becomes the 651 level, which corresponds to the November swing low shown on our chart.