SPY Weekly/Monthly Update
Recap:
SPY is currently in a corrective wave using price action on the higher timeframe. Corrective waves are completed after 3 legs (A, B, and C) … Each wave has 5, 3, and 5 legs per wave respectively. A (5 legs), B (3 legs), and C (3 legs). There are other specifics but I will not go into detail.
For now we are operating within wave A, soon to be wave B which is a correction within a corrective wave. lol once I will not go into.
The key price points throughout the entire correction are 492.69, 480.22, 466.84, and 453.45. The golden zone is between 453.45 and 466.84. Anything below that ....... yikes
The previous week on SPY closed near the first key price point (492.69). Price is also sitting at oversold levels in confluence with lots of demand. This week also signaled a break below the previous month’s low, a first since Sep 2023.
Trade Idea 1:
As long as price doesn’t capitulate to the downside, going into next week I expect price to begin setting up to make a push higher from this demand area with a target to the previous month’s low week. I am also watching for some form of price consolidation between 493.55 and 506.53 until price convincingly breaks either level, preferably 493.55.
In addition to looking to trade the retracement move to the upside, I would like for price to push below 493.55 briefly then reclaim the level the breaking above the lower time frame downtrend before playing the move upward.
Trade Idea 2:
If price does maintain the current downtrend and continue down I will look for a sell entry below 493.55 and 490 to target the next major level below.
SPY is currently in a corrective wave using price action on the higher timeframe. Corrective waves are completed after 3 legs (A, B, and C) … Each wave has 5, 3, and 5 legs per wave respectively. A (5 legs), B (3 legs), and C (3 legs). There are other specifics but I will not go into detail.
For now we are operating within wave A, soon to be wave B which is a correction within a corrective wave. lol once I will not go into.
The key price points throughout the entire correction are 492.69, 480.22, 466.84, and 453.45. The golden zone is between 453.45 and 466.84. Anything below that ....... yikes
The previous week on SPY closed near the first key price point (492.69). Price is also sitting at oversold levels in confluence with lots of demand. This week also signaled a break below the previous month’s low, a first since Sep 2023.
Trade Idea 1:
As long as price doesn’t capitulate to the downside, going into next week I expect price to begin setting up to make a push higher from this demand area with a target to the previous month’s low week. I am also watching for some form of price consolidation between 493.55 and 506.53 until price convincingly breaks either level, preferably 493.55.
In addition to looking to trade the retracement move to the upside, I would like for price to push below 493.55 briefly then reclaim the level the breaking above the lower time frame downtrend before playing the move upward.
Trade Idea 2:
If price does maintain the current downtrend and continue down I will look for a sell entry below 493.55 and 490 to target the next major level below.
Dennis Butler Jr.
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