SPY Approaching Key Resistance: Will Bulls Keep Control?Technical Analysis & Price Action
* Trend Overview: SPY is in a steady uptrend, hitting $607.91 intraday, with a narrowing rising wedge pattern forming. The price is testing resistance, and volume remains consistent, indicating active participation.
* Support Levels:
* $604.63: Immediate support for pullbacks within the wedge.
* $602.32: Key pivot point, aligning with recent consolidation zones.
* $597.25: A strong support area, breaching this level could shift sentiment.
* Resistance Levels:
* $607.91: Immediate resistance; a breakout could drive momentum toward $610+.
* $610.50–$612: Major resistance zone for profit-taking or potential rejection.
Liquidity Zones & Order Blocks
* Liquidity Zone: $604–$606, high activity zone acting as both support and resistance.
* Order Block: $607–$609, significant recent buying activity suggests this area needs to be monitored for breakout confirmation.
Scalping Playbook
1. Bullish Setup:
* Entry: Above $608 on volume spike and breakout confirmation.
* Target: $610 (partial) and $612.
* Stop Loss: Below $606.
2. Bearish Setup:
* Entry: Below $604.50 with high selling pressure.
* Target: $602.50 and $600.
* Stop Loss: Above $606.
Swing Trade Strategy
1. Bullish Swing:
* Entry: Close above $608 with strong continuation signals.
* Target: $612 (short-term) and $615 (medium-term).
* Stop Loss: $605.
2. Bearish Swing:
* Entry: Close below $602 with significant volume.
* Target: $597 and $595.
* Stop Loss: $605.
Thoughts & Projections
* SPY is showing signs of slowing momentum as MACD histograms weaken, signaling potential consolidation or a pullback.
* A breakout above $608 could fuel bullish sentiment, but watch for rejection near $610 due to rising wedge dynamics.
* If SPY breaks below $604, bearish sentiment may intensify, targeting $602 and lower.
Disclaimer: This analysis is for educational purposes only and not financial advice. Always perform your due diligence and practice proper risk management.
