SPY scalping tomorrow Oct. 25, 2024

For SPY scalping tomorrow and analyzing the close for the week

1. Analysis:
Trend: SPY is currently trading in a clear downward channel, with resistance around 580 and immediate support near 577.99. The downward trendlines suggest continued pressure to the downside unless it breaks out above resistance.

Key Levels:
Resistance: 580.00, 581.22
Support: 577.99 (short-term), 574.12 (stronger support zone)

Volume: There's been a visible spike in volume, suggesting heightened interest around current levels. The question for tomorrow is whether this will translate into further selling or a potential bounce.

Scalping Strategy:
Bearish Bias: Given the downtrend, I'd lean toward a bearish bias until we see a decisive break of the upper resistance at 580. This is where many traders may anticipate selling pressure, especially with lower highs being printed.

Entries: Look for a possible retest of resistance at 580. You could consider entering a short position if this level holds as resistance and the price starts rejecting this area with selling volume. If price breaks above 580, wait for confirmation before reversing to a bullish stance.

Exits/Targets:
If short from around 580, consider targeting 577.99 as the first exit, followed by 574.12 if weakness continues.
Watch for signs of consolidation or potential bounces around 574, which could lead to reversals intraday.

Closing Thoughts for the Week:
If SPY continues to trade within this descending channel, it's likely to test lower support levels like 574 or even 570. However, if there's any significant news or a surprise buying surge, watch for a potential upside break of the 580 level, which could shift sentiment more bullish into the end of the week.

Disclaimer:
This analysis is for educational purposes and should not be considered financial advice. Trading carries risks, and it's essential to do your own research or consult with a licensed financial advisor before making any trading decisions.