SPY Approaches Key Psychological Level — What Traders & Investors Should Watch Next

The S&P 500 ETF (SPY) closed Friday at $599.14, flirting just below the major 6,000 level, which is acting as both a psychological and technical resistance point. This week, SPY pushed up nearly 1%, holding strong above both the 20 EMA (585) and the 200 EMA (575). Technical momentum remains intact, but the market is approaching a critical short-term decision zone with an RSI now hovering at ~66, nearing overbought levels.

Market Sentiment: Cautiously Bullish but Stretched

The tone remains bullish, but some caution is building as we approach the upcoming inflation data and the Fed’s next meeting. Recent headlines have helped fuel the advance — including stable earnings, better-than-expected economic growth, and easing trade headlines. However, inflation and Fed policy remain the wildcards. Markets will pay close attention to the June 12 CPI release and the June 17-18 Fed meeting. Any surprise could trigger quick repositioning.

Current Option Flow & Trade Ideas

Looking at the July 18 option chain:

• Heavy open interest continues to cluster around the 590–600 calls.

• IV Rank is still low (~16-17%), making debit spreads more attractive than credit spreads.

• Delta around 0.55-0.60 sits at the 595–600 strike zone — perfect for directional trades.

Levels to Watch

• 🚩 Resistance: $600 psychological level; $605 next upside target.

• 🚩 Support: 585 (20 EMA), 575 (200 EMA).

• 🚩 Volatility trigger: June 12 CPI and June 18 Fed.

Bottom Line:The path of least resistance remains higher, but traders should stay nimble with CPI and Fed decisions approaching. Investors can continue holding, while short-term traders should avoid chasing and focus on defined-risk setups.