SPY Levels to Watch

A DSI case in point, SPY is down about $0.07 right now, yet DSI is at 95%. For the time being, no one cares that SPY is overbought.

That said, however, from a channel analysis perspective, let's notice that SPY is bumping up against the upper channel boundary line of its Oct.-Jan. bullish price channel. The 273.80 - 274.20 area is the next zone from where SPY could reach near term upside exhaustion, and thereafter reverse into a correction. To get any initial downside traction, SPY needs to break below 271.40.