SPY opened 2026 below a proprietary flip zone that signals bearish bias. Max pain sits at 684 with $420 million in put open interest acting as resistance. Support levels are at 680, 678, and 672, all backed by heavy put positioning.
Welcome to 2026. First trading day of the year, and market structure starts immediately. SPY closed the year at 682.0, and is starting 2026 below the flip, which puts us in bearish territory. The flip zone defines directional territory. Above the flip, calls have edge. Below the flip, puts have edge. Exact flip levels are for VIP members. Above price, 684 is max pain, and it carries the largest positioning we've seen at over 420 million with massive put open interest. That makes 684 a major put wall acting as resistance. Max pain can pull price, but the put positioning creates heavy downside protection. Below price, 680 is first support, followed by 678 as a strong floor, and 672 with heavy put interest underneath. As long as price remains below the flip, the bias stays bearish. Watch how price reacts if it pushes toward the 684-685 zone. For a bullish shift, price must break and hold above the flip and clear the massive 684 put wall— that's a heavy lift. This creates a key study range between 680 and 685, where structure, positioning, and behavior meet. Ending 2025, this framework consistently highlighted structure, flip bias, and major positioning, and we're starting 2026 the same way. Educational only, not financial advice.
