SPY- Bullish Reversal - Update
Updated
The SPY closed out the week strong after finally getting some strong bullish momentum as a result of the CPI & Jobless Claim Data that came out on Thursday. If CPI continues to decrease as it did, I can certainly see the SPY gaining even more traction and finally breaking out of the bearish megaphone that it has been holding since November 2021. Subsequently, the SPY closed on Friday reclaiming both its 50, and 100-Day SMA's, as well as having the EMA's starting to curl upwards.
The SPY is currently flagging on the weekly timeframe and couldn't look better at the moment, while there's a potential for a slight rising wedge to have formed, the plethora of bullish technical, and fundamental indicators will invalidate this wedge even if it does fully form (See Attached Chart Below). On top of this, there is a considerable amount of hidden bullish divergence on the RSI as well as a bullish ABCD Harmonic Pattern Forming. The coming week will undoubtedly be a make-or-break type of week with the SPY going to test its 200-day SMA, which has been acting as strong resistance, especially considering all of the economic data coming out throughout the week.
Personally, am bullish here and looking for a breakout on the upside, in my opinion, the drop in CPI could've been the catalyst for the markets to start heading upward and break the downtrend they've been holding. Some RSI-based supply and demand zones to keep an eye on in the interim, Bullish and hedged for the time being, which I hope to cut- --See Previous Charts Attached Below--
--Weekly Timeframe--
https://www.tradingview.com/chart/SPY/oWCeGjEb-SPY-Weekly/
--Previously Charted--
https://www.tradingview.com/chart/SPY/vOAT514J-SPY-Potential-Reversal-Update-Bullish/
https://www.tradingview.com/chart/SPY/5s5D4ME1-Bearish-Megaphone-on-the-SPY-Update/
https://www.tradingview.com/i/h3YnbjtL/
The SPY is currently flagging on the weekly timeframe and couldn't look better at the moment, while there's a potential for a slight rising wedge to have formed, the plethora of bullish technical, and fundamental indicators will invalidate this wedge even if it does fully form (See Attached Chart Below). On top of this, there is a considerable amount of hidden bullish divergence on the RSI as well as a bullish ABCD Harmonic Pattern Forming. The coming week will undoubtedly be a make-or-break type of week with the SPY going to test its 200-day SMA, which has been acting as strong resistance, especially considering all of the economic data coming out throughout the week.
Personally, am bullish here and looking for a breakout on the upside, in my opinion, the drop in CPI could've been the catalyst for the markets to start heading upward and break the downtrend they've been holding. Some RSI-based supply and demand zones to keep an eye on in the interim, Bullish and hedged for the time being, which I hope to cut- --See Previous Charts Attached Below--
--Weekly Timeframe--
https://www.tradingview.com/chart/SPY/oWCeGjEb-SPY-Weekly/
--Previously Charted--
https://www.tradingview.com/chart/SPY/vOAT514J-SPY-Potential-Reversal-Update-Bullish/
https://www.tradingview.com/chart/SPY/5s5D4ME1-Bearish-Megaphone-on-the-SPY-Update/
https://www.tradingview.com/i/h3YnbjtL/
Note
Some Key FIB Levels to Watch (Monthly Timeframe)
Related publications
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.