SPY in Downtrend: Key Levels and Trade Setups for Nov. 15, 2024
Trading Plan and Technical Analysis for SPY
Overview
SPY has shown a sharp downward trend recently, with price action reflecting bearish momentum. In this setup, I’ll cover important support and resistance levels, supply and demand zones, and potential entry/exit points for both scalping and swing trades.
Key Levels
Support Zones:
$591: This is the immediate support level. A break below this could signal further downside momentum.
$585: If SPY fails to hold above $591, this level becomes the next target and is a key zone where buyers may step in.
Resistance Zones:
$594.34 - $594.96: This area served as previous support and may now act as resistance. A strong push above this range could indicate a potential reversal.
$599.16: If SPY can break through $594 with volume, the next significant resistance is around $599.
Price Action & Supply/Demand Zones
Demand Zone: Between $585 and $591, where SPY may find buying interest if the downward pressure subsides.
Supply Zone: The region around $594.34 - $594.96. If price approaches this zone, watch for potential selling or resistance unless there’s a strong breakout.
Order Blocks & Market Structure
Bearish Order Block: Around $594.34 - $594.96, where sellers previously gained control. This area is a critical level for bears to defend if the downtrend is to continue.
Potential Bullish Reversal: If SPY can reclaim and hold above $594.96, it could signal a shift toward bullish sentiment, at least for a short-term bounce.
Entry & Exit Suggestions
Scalping Entry: For short scalps, look to enter around $591 on breakdowns or quick bounces, targeting $588 with a tight stop above $592.
Swing Trade Entry: Consider entering near $585 if SPY reaches this level and shows signs of support, with a potential target around $594.34. Use a stop-loss below $584 to manage risk.
Directional Outlook
Bearish Scenario: If SPY fails to hold $591, look for further downside, with $585 as the next key target.
Bullish Reversal Potential: For a bullish reversal, SPY needs to break above $594.96 with volume. This could lead to a short-term move toward $599.16.
Thoughts and Suggestions
With the current downtrend, scalpers should focus on quick plays around the support levels. Swing traders may find opportunity if SPY shows signs of strength at $585, but it’s crucial to be cautious until a clearer reversal signal emerges.
Disclaimer
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research and consult with a financial advisor before making trading decisions.
Overview
SPY has shown a sharp downward trend recently, with price action reflecting bearish momentum. In this setup, I’ll cover important support and resistance levels, supply and demand zones, and potential entry/exit points for both scalping and swing trades.
Key Levels
Support Zones:
$591: This is the immediate support level. A break below this could signal further downside momentum.
$585: If SPY fails to hold above $591, this level becomes the next target and is a key zone where buyers may step in.
Resistance Zones:
$594.34 - $594.96: This area served as previous support and may now act as resistance. A strong push above this range could indicate a potential reversal.
$599.16: If SPY can break through $594 with volume, the next significant resistance is around $599.
Price Action & Supply/Demand Zones
Demand Zone: Between $585 and $591, where SPY may find buying interest if the downward pressure subsides.
Supply Zone: The region around $594.34 - $594.96. If price approaches this zone, watch for potential selling or resistance unless there’s a strong breakout.
Order Blocks & Market Structure
Bearish Order Block: Around $594.34 - $594.96, where sellers previously gained control. This area is a critical level for bears to defend if the downtrend is to continue.
Potential Bullish Reversal: If SPY can reclaim and hold above $594.96, it could signal a shift toward bullish sentiment, at least for a short-term bounce.
Entry & Exit Suggestions
Scalping Entry: For short scalps, look to enter around $591 on breakdowns or quick bounces, targeting $588 with a tight stop above $592.
Swing Trade Entry: Consider entering near $585 if SPY reaches this level and shows signs of support, with a potential target around $594.34. Use a stop-loss below $584 to manage risk.
Directional Outlook
Bearish Scenario: If SPY fails to hold $591, look for further downside, with $585 as the next key target.
Bullish Reversal Potential: For a bullish reversal, SPY needs to break above $594.96 with volume. This could lead to a short-term move toward $599.16.
Thoughts and Suggestions
With the current downtrend, scalpers should focus on quick plays around the support levels. Swing traders may find opportunity if SPY shows signs of strength at $585, but it’s crucial to be cautious until a clearer reversal signal emerges.
Disclaimer
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research and consult with a financial advisor before making trading decisions.
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.