SPY Analysis: Will the S&P 500 Break Support or Rebound?
Updated
Technical Analysis
Price Action Breakdown:
* Today’s Performance: SPY experienced a bearish session, breaking below key support levels around $608 and testing $604 by the end of the day.
* Support and Resistance Levels:
* Resistance: $609.07 and $612.00 are key overhead levels to watch.
* Support: Immediate support lies at $604.35, with a critical level at $597.25.
Indicators:
* MACD: The MACD shows bearish momentum, with the histogram declining and the signal line below the MACD line.
* Moving Averages:
* SPY has broken below the 50-period moving average, signaling weakness.
* The 200-period moving average is acting as support near $595.
Trendlines and Channels:
* Descending Trendline: A short-term downtrend is forming, with SPY unable to reclaim higher highs from last week.
Liquidity Zones and Order Blocks:
* Liquidity Zone: Strong liquidity is observed between $608 and $604, suggesting institutional activity at these levels.
Scenarios:
1. Bullish Scenario:
* If SPY reclaims $608, it may retest $609 and move toward $612.
2. Bearish Scenario:
* A break below $604 could lead to a test of $597 and potentially lower levels at $595.
Trading Plan
Scalping Strategy:
* Entry Points:
* Long: Above $608 with a target of $609 and $612.
* Short: Below $604 with a target of $597.
* Stop Loss:
* For long trades, place a stop loss at $606.
* For short trades, use $606 as a stop.
Swing Trading Strategy:
* Bullish Outlook: Accumulate SPY if it closes above $608, targeting $612.
* Bearish Outlook: Short positions can be initiated below $604, with targets of $597 or $595.
Risk Management:
* Maintain a risk-reward ratio of at least 1:3.
* Limit exposure to 2% of capital per trade.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research before trading.
Price Action Breakdown:
* Today’s Performance: SPY experienced a bearish session, breaking below key support levels around $608 and testing $604 by the end of the day.
* Support and Resistance Levels:
* Resistance: $609.07 and $612.00 are key overhead levels to watch.
* Support: Immediate support lies at $604.35, with a critical level at $597.25.
Indicators:
* MACD: The MACD shows bearish momentum, with the histogram declining and the signal line below the MACD line.
* Moving Averages:
* SPY has broken below the 50-period moving average, signaling weakness.
* The 200-period moving average is acting as support near $595.
Trendlines and Channels:
* Descending Trendline: A short-term downtrend is forming, with SPY unable to reclaim higher highs from last week.
Liquidity Zones and Order Blocks:
* Liquidity Zone: Strong liquidity is observed between $608 and $604, suggesting institutional activity at these levels.
Scenarios:
1. Bullish Scenario:
* If SPY reclaims $608, it may retest $609 and move toward $612.
2. Bearish Scenario:
* A break below $604 could lead to a test of $597 and potentially lower levels at $595.
Trading Plan
Scalping Strategy:
* Entry Points:
* Long: Above $608 with a target of $609 and $612.
* Short: Below $604 with a target of $597.
* Stop Loss:
* For long trades, place a stop loss at $606.
* For short trades, use $606 as a stop.
Swing Trading Strategy:
* Bullish Outlook: Accumulate SPY if it closes above $608, targeting $612.
* Bearish Outlook: Short positions can be initiated below $604, with targets of $597 or $595.
Risk Management:
* Maintain a risk-reward ratio of at least 1:3.
* Limit exposure to 2% of capital per trade.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research before trading.
Trade active
SPY is currently trading within a downward trend channel, indicating bearish momentum. Immediate resistance lies at $605.78, while support is at $604.00, with the potential to test $600.00 if selling pressure continues.
Key technical signals:
EMA Trend: SPY is trading below the moving averages, confirming bearish momentum.
MACD: Still bearish, showing no clear signs of reversal yet.
Volume: Watch for volume spikes to confirm a breakout or breakdown.
Scenarios:
Bullish: A break above $605.78 could target $607–$609.
Bearish: A break below $604.00 could push SPY toward $600.00.
Strategy:
Bullish Play: Enter above $605.78 with volume confirmation, targeting $607–$609.
Bearish Play: Short below $604.00, targeting $600.00, with a stop-loss above $605.78.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.