Cautious Outlook; Volatility Tests Support

The market showed signs of consolidation and increased volatility last week, with the SPY briefly breaking below key support levels before recovering. The index closed the period near its lows, indicating ongoing selling pressure. The VIX ticked higher, reflecting growing investor unease. Technically, the price is trading below its key moving averages (EMA20 and EMA50), which now act as resistance, suggesting the short-term trend remains under pressure. The repeated tests of the lows indicate a battle between bulls and bears, warranting a cautious approach until a clearer direction is established.