SPY Pullback: Time to Consider New Swing Long Positions!

Oct 15

While SPY remains in a strong uptrend, today’s 0.5% decline offers a healthy retracement for swing traders looking to enter long positions at more favorable levels. I don’t expect this pullback to last long or be of significant magnitude, but the short-term weakness is evident, creating an attractive window to buy into the trend. Watch for upcoming signals, as this dip could present a fresh opportunity for the next upward move.

The technicals support this outlook:

Relative Strength Index (RSI): 63.85 (Neutral), indicating the market isn’t oversold yet, leaving room for more downside before a potential rebound.

MACD Level: 5.77 (Buy), signaling positive momentum and supporting the overall bullish trend.

Momentum (10): 12.81 (Buy), confirming underlying strength in the uptrend.

Exponential Moving Averages (10, 20, 50, 100, 200): All in “Buy” territory, reinforcing that the uptrend remains intact despite today’s pullback.

However, Stochastic %K (90.36) and Commodity Channel Index (192.15) point to potential short-term exhaustion, suggesting this is a brief pause before the next leg higher. Swing traders should stay alert for a better entry point at any moment.

Action: Stay tuned for a buying opportunity and follow me to see when I make my next move into the trend!

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Trading involves risks, and you should only invest what you can afford to lose. Always do your own research and consult with a financial advisor before making investment decisions.

Oct 16

Note

With all Mag-7 stocks except NVDA and TSLA opening in the red, the short-term outlook for the broader market remains weak.

I’ll stay patient, waiting to open a long position at a more favorable price level, as explained yesterday.

Oct 17

Trade active

SPY closes flat after reaching a new all-time high but gave up all gains to close at the lows, showing a lack of momentum. I’m keeping my neutral stance, patiently waiting for levels with a better risk-reward setup.

The key to a sound trading system is entering trades with a favorable mathematical expectation. In this case, the length of the rally has pushed stop zones too far, reducing the trade's risk reward. That's why I’ve refrained from jumping into the trend.

Patience is crucial for any good trader.

Oct 21

Trade active

SPY is struggling to reach new highs, and I still think the risk-reward ratio for long positions isn't favorable yet. I'll keep this idea open, waiting for what I like to call a 'lofty price' to enter.

Oct 28

Trade active

SPY is stuck in a chop zone—not ideal for swings. Intraday oscillators still show neutral vibes with a slight sell signal from Momentum.
Sideways market? Time for scalps, not swings!
In summary, I remain patient with this entry.