For tomorrow's SPY Technical Analyst (October 3, 2024)The market sentiment is leaning towards bearish following recent weakness due to a slight pullback in the broader market. Currently, SPY is trading around $568 with some volatility.
Technical Analysis:
Support Levels: Immediate support is seen around $565, which was tested recently. If it breaks below this, $560 could be the next significant support level.
Resistance Levels: On the upside, resistance is around $570, which also aligns with where sellers have been active. Breaking above this level could target the next zone around $574.
Price Action & Trend: There seems to be consolidation between $565 and $570. A move above $570 could indicate bullish continuation, while a drop below $565 may signal further downside(
markets.businessinsider.com).
Entry/Exit Points:
Potential Entry: Look for a bounce off $565 for a long position, but watch for confirmation of a strong support hold (e.g., candlestick patterns like a bullish engulfing on the 1-hour chart).
Potential Exit: If going long, target $570 and then $574. For shorts, breaking below $565 could aim for $560 as an exit target.
Risk Management: Keep stop losses tight around $562 to minimize downside risks if the market moves against your position.
