Bearish on SPY

After gapping down last week, we consolidated for the remainder of the week and successfully filled the gap. February is likely to be a bearish month. There’s a possibility that a double top has formed, and if we fail to break last week’s high while dropping below 600, a sharp decline could follow.

Key support levels to watch if SPY moves lower next week:

595

575

567 (a break below this level makes 540 highly probable).