SPY made a significant move to the upside on Friday, surging back to the $420 level. This was largely driven by an AI-driven surge that positively impacted both the tech sector and the broader market (including banks). However, it's crucial for bears to prevent a weekly close above $420 and look for a pullback similar to what occurred at the beginning of the week from the previous Friday when price first crossed $420 mark. Keep in mind the 410 pivot level will continue to play a significant role in the next downward move.Although my bias leans towards the downside that I believe has been largely delayed. It's important to acknowledge the potential for a higher breakout. Remember to exercise caution and be mindful that this breakout could still either be a bull trap, or a could signify the continuation of a new upward trend.
SPY is also approaching the 61.8 retracement level, which is a significant resistance level where we can expect a potential rejection. This level may act as a strong barrier based on how it's historically acted as a major pivot on the daily timeframe. Additionally, I want to highlight the next Fibonacci time target, which points to the last week of July. This target could potentially mark a significant turning point, either a high or a low, depending on how price action develops in the coming weeks. I'll revisit this analysis later on to see how it unfolds.Investment Strategy: Short Swing Strategy (Longer Term Horizon)
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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.