SPY Technical Analysis on October 29, 20241. Chart Patterns and Price Action:
Descending Triangle: SPY is forming a descending triangle pattern with lower highs, which typically suggests bearish pressure. A break below the triangle support could indicate a bearish continuation.
Downtrend: The chart shows lower highs and lower lows, confirming a short-term downtrend.
2. Support and Resistance Levels:
Immediate Resistance Levels:
579.80 - 582.98: This zone represents a resistance cluster, where SPY has faced selling pressure in previous sessions.
584.44 - 585.39: If SPY breaks above the immediate resistance, this higher level may act as another cap.
Support Levels:
577.61: Immediate support, where SPY might find buyers if it dips early in the session.
574.41: A key support level; a break below this could indicate increased selling pressure.
3. MACD and Volume Analysis:
MACD: Currently showing minor divergence near the zero line, signaling potential indecision. Watch for a clear crossover to gauge momentum.
Volume: Volume spikes align with sharp moves. The last session’s volume decrease suggests a possible consolidation before a decisive move.
4. Scalping Strategy for Today:
Entry Points:
Long Entry: Around 577.61 if it shows a strong bounce with volume. Confirm price action for a reversal before entering.
Short Entry: Below 574.41 if it breaks with high volume, targeting lower levels or trailing the stop.
Exit Points:
Long Exit: Near 579.80 - 582.98 resistance zone.
Short Exit: Consider taking profits near 574.41 or lower if momentum continues.
Stop-Loss: Place stop-loss slightly below 577.61 for long positions and above 579.80 for short positions.
5. Swing Trade Analysis:
Directional Bias at Open: Likely a bearish open if it remains below 577.61. A test of this support zone may lead to a bounce if buyers step in, but a failure here suggests further downside.
Intraday Movement:
If SPY breaks above 579.80, a rally toward 582.98 could be in play, offering a short-term bullish setup.
Below 574.41, downside continuation with 570 as a possible intraday target.
Close Expectations: Potential bearish close if it fails to reclaim 579.80. A break below 574.41 could indicate bearish continuation for the following days.
6. Key Levels Summary:
Support Zones: 577.61, 574.41
Resistance Zones: 579.80, 582.98, 584.44-585.39
Disclaimer:
This analysis is for informational purposes only and not financial advice. Trading involves risk, and past performance is not indicative of future results. Always do your own research and consider consulting a financial advisor.
