Does the sim take into effect how the team is playing in general when simming the games? For example, for the second straight season one of my teams has lost a game where they were favored by 16+ the game after a tough loss...is this just a coincidence? I've also noticed winning streaks seem to effect how lines are set...so does the sim actually take these things into effect or am I just noticing happenstance events?

coincidence that the team lost.

However, the more you win, the better your betting line should look