There is no question things were a little weird. The lack of depth is quite concerning.
SPY Monthly
The blue line is the 13 month moving average, red is the 39 month.
The chart formation is called a megaphone because that is what it looks like with the lower lows and higher highs. To put it mildly, this isn’t considered favorable because of the wild swings. The formation is quite unusual on this timescale.
There is a decent chance that the 39 month will be tested. That is sort of a normal pullback on these timescales. That is probably more or less a good place to buy, but it will be a lot of heat for current longs to put up with.
Tomorrow is Friday, it will be interesting to see how much appetite there is to hold over the weekend.
