SPY Pullback: Time to Consider New Swing Long Positions!While AMEX:SPY remains in a strong uptrend, today’s 0.5% decline offers a healthy retracement for swing traders looking to enter long positions at more favorable levels. I don’t expect this pullback to last long or be of significant magnitude, but the short-term weakness is evident, creating an attractive window to buy into the trend. Watch for upcoming signals, as this dip could present a fresh opportunity for the next upward move.
The technicals support this outlook:
Relative Strength Index (RSI): 63.85 (Neutral), indicating the market isn’t oversold yet, leaving room for more downside before a potential rebound.
MACD Level: 5.77 (Buy), signaling positive momentum and supporting the overall bullish trend.
Momentum (10): 12.81 (Buy), confirming underlying strength in the uptrend.
Exponential Moving Averages (10, 20, 50, 100, 200): All in “Buy” territory, reinforcing that the uptrend remains intact despite today’s pullback.
However, Stochastic %K (90.36) and Commodity Channel Index (192.15) point to potential short-term exhaustion, suggesting this is a brief pause before the next leg higher. Swing traders should stay alert for a better entry point at any moment.
Action: Stay tuned for a buying opportunity and follow me to see when I make my next move into the trend!
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Trading involves risks, and you should only invest what you can afford to lose. Always do your own research and consult with a financial advisor before making investment decisions.
