SPY inverted head and shoulders pattern at risk of collapse due to close below 775.21 neckline; support near 764.

So, let's move on to the S&P 500 index as we see it here on the SPY daily chart. The inverted head and shoulders pattern is at risk of collapse. Look where the price closed today, clearly below that level .

We closed today at 773.93, and this neckline, folks, is at 775.21.

Now, I'm still keeping this model. We have had several occasions where we had one bearish test candle, and the next day the test candle came back above that line. Therefore, we will continue to monitor this matter very closely .

If we see more selling pressure, then bridging this gap is where I see good support here at around 764. Pierce , if you extend this level through the previous price action, you will find that it is also the location of previous pivot peaks.

So, for the downward trend, here we are near the gap filling at 764.

On a breakout to the upside, this neckline should be watched . Essentially , any rise above and around 775 brings investors back into a state of near-term optimism, as the yield on 10-year bonds has also fallen.

Now, let's move to the ten-minute timeframe, so you can see the sharp fluctuations that occurred today. We saw a downward gap today, and for about the first hour , we were coming up to fill the gap and stay above this dotted neckline .

Then, as you can see here, we fell back down again , and tried to climb back up, and that's when that news came out , and look at that big drop in the S&P 500, which pushed us at 1:20 PM to around $770 before we finished the session at 773.

Even in the post-close period, there was a push towards the upside, getting closer to that neckline. This sums up everything that happened in the S&P 500 index with a lot of violent swings during the middle of the day.