SPY - Bullish breakout setup
After a strong bull run in the SPY price has been stuck in a period of tight consolidation. We are looking for bullish price action setups so we can get long with the overall trend. While price continued to consolidate today there was a bullish hammer that formed off of a key support level showing buying interest. If price can break above the hammer we could see a continuation of the bullish trend. A potential trade would be to enter at the break of the hammer and to place a stop loss just below the bottom of the hammer. This would create a very attractive risk/reward trade that also gets you in the market with the trend.
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