- Key Insights: The SPY is showing signs of recovery after a substantial
decline, bouncing off critical support around $590. Maintaining above this
level is crucial for a bullish outlook. Traders should focus on the
resistance at $600, as surpassing this could ignite further upward momentum.
The external economic factors, including declining oil prices and
fluctuations in interest rates, are providing a supportive backdrop for
equities.
- Price Targets: Next week targets are set at T1=$620 and T2=$630. Stop levels
will be S1=$590 and S2=$583, providing a safety net for long positions while
aligning with current market conditions.
- Recent Performance: SPY recently faced a challenging period with six
consecutive days of decline, hitting lows around $585. However, in the last
sessions, it has rebounded over 1.5%, reflecting a shift in market sentiment
toward a more optimistic outlook.
- Expert Analysis: Analysts remain mixed on the pace of recovery, with some
expecting a V-shaped rebound toward $620 by March. The consensus is that
maintaining above vital support levels will be essential for sustaining
bullish sentiment, while any breach below $580 could trigger further market
pessimism.
- News Impact: The broader market dynamics are being significantly shaped by
external factors such as interest rates, which have recently declined from
4.5% to 4.23%. Additionally, falling oil prices under $70 a barrel are seen
as beneficial for reducing inflationary pressures, further adding to the
favorable environment for equities like SPY.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.