Rich Ross Is Bearish On SPDR S&P 500 ETF Trust

On CNBC's Trading Nation, Rich Ross of Evercore ISI shared with the viewers his technical analysis for SPDR S&P 500 ETF Trust SPY.

He spotted a head and shoulders pattern in the chart of SPDR S&P 500 ETF Trust and he explained that the stock is currently trading at its neckline. It has returned most of its post Brexit gains and it is now trading close to $212, which is its support. He added that SPDR S&P 500 ETF Trust reached a top at $212 on November 4, 2015 and that makes $212 price level even more important.

Ross thinks the stock is going to drop to $205, if it drops below $212. He added that he would use a stop loss for this trade, at $212.