SPY Technical Analysis – October 17, 2024
Current Price Overview:
Recent High: 586.30
Major Support Level: 581.50
Previous Low: 578.96
Key Observations:
Trendlines & Price Action:
The price has retraced sharply after an earlier rally to 586.30, indicating a pullback phase.
It is now sitting near the 583.57 level, testing a short-term upward trendline as support.
If the support at 581.50 holds, the price may consolidate before another push upwards. However, if it breaks down, a retest of 580.49 or even the 578.96 low is possible.
Volume Analysis:
There is a spike in selling volume during the recent pullback, suggesting short-term profit-taking or a shift in sentiment.
Monitor if buying volume increases on a bounce from 581.50, as that will indicate buyers stepping in to defend support.
MACD Indicator:
The MACD lines are crossing upwards from a recent bearish dip, showing early signs of momentum shifting back to the upside.
A clean break above zero on the MACD histogram would confirm bullish momentum for the day.
Scenario Analysis for End of Day:
Bullish Case:
If SPY holds above the 581.50 support and reclaims 585.28, a late-day rally toward 586.30 or even higher is possible.
A close above 585 would signal that buyers are regaining control.
Bearish Case:
If 581.50 fails, expect a deeper pullback toward 580.49 or 578.96.
A close below 581 would reflect continued selling pressure and bearish sentiment into tomorrow’s session.
Trading Strategy:
Long Setup:
Enter long if the price holds 581.50 and reclaims 585.28 with volume, targeting 586.30.
Use 581.00 as a stop-loss for risk management.
Short Setup:
Consider shorting if SPY breaks 581.50, with a target near 580.49 or 578.96.
Use 583.50 as a stop to protect the trade.
Disclaimer:
This analysis is for educational purposes only and should not be considered financial advice. Always perform your own research and consult with a professional before making any trading decisions. Trading involves risks, and you may lose more than your initial investment.
Recent High: 586.30
Major Support Level: 581.50
Previous Low: 578.96
Key Observations:
Trendlines & Price Action:
The price has retraced sharply after an earlier rally to 586.30, indicating a pullback phase.
It is now sitting near the 583.57 level, testing a short-term upward trendline as support.
If the support at 581.50 holds, the price may consolidate before another push upwards. However, if it breaks down, a retest of 580.49 or even the 578.96 low is possible.
Volume Analysis:
There is a spike in selling volume during the recent pullback, suggesting short-term profit-taking or a shift in sentiment.
Monitor if buying volume increases on a bounce from 581.50, as that will indicate buyers stepping in to defend support.
MACD Indicator:
The MACD lines are crossing upwards from a recent bearish dip, showing early signs of momentum shifting back to the upside.
A clean break above zero on the MACD histogram would confirm bullish momentum for the day.
Scenario Analysis for End of Day:
Bullish Case:
If SPY holds above the 581.50 support and reclaims 585.28, a late-day rally toward 586.30 or even higher is possible.
A close above 585 would signal that buyers are regaining control.
Bearish Case:
If 581.50 fails, expect a deeper pullback toward 580.49 or 578.96.
A close below 581 would reflect continued selling pressure and bearish sentiment into tomorrow’s session.
Trading Strategy:
Long Setup:
Enter long if the price holds 581.50 and reclaims 585.28 with volume, targeting 586.30.
Use 581.00 as a stop-loss for risk management.
Short Setup:
Consider shorting if SPY breaks 581.50, with a target near 580.49 or 578.96.
Use 583.50 as a stop to protect the trade.
Disclaimer:
This analysis is for educational purposes only and should not be considered financial advice. Always perform your own research and consult with a professional before making any trading decisions. Trading involves risks, and you may lose more than your initial investment.
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.
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.