$SPY - Critical Institutional and Retail Markers IncomingMany are unaware of the Anchored VWAP tool and that is unfortunate, because this is a critical marker for large institutions and their orders. When anchored to significant market events, such as 1st trading day of each year, Highs, Lows, Election days, etc; this tool gains even more usefulness. As Brian Shannon, who has popularized the tool amongst retail traders like myself, oft repeats the Anchored VWAP is, "the perfect combination of the only 3 things that actually matter when trading - Volume , Time, and Price". If that doesn't sell you, just look at a few charts or try it yourself and if you're not impressed, you may just be ded lol.
Well, gear up because as you can see here, we are approaching a critical zone of Institutional and Retail confluence. If you look back at the prior Weekly HL, we missed the critical 1/2019 VWAP after 3 attempts (whether by design or not), and it appears now they have worn enough people out to give it another go. NOT coincidentally, and beautifully designed, these critical VWAPs now fall at an impressive zone of numerous retail possible support zones as well. I always pay special attention when the most popular retail tools line up for extra S/R with the Institutional tools and this is certainly no exception. This is the location of the critical 1/2019 VWAP , the 2018 Low VWAP , the Weekly Higher Low (HL), the 200DMA & the 350 DMA. Quite an area!
-Also quite interesting to note here is that over the next 10-20 days, the 200DMA will be losing its lowest calculation days BY FAR (thanks to the giant but quick Dip to the 2016 VWAP back during Xmas 2018) which should give the 200DMA significant upwards momentum shortly. A perfect boon for a recovery likely propelling us to new highs and perhaps (fingers crossed) finally getting us out of this sideways market we've been in for quite some time. Watch closely, and I suggest begin stalking your favorite long setups now.
