$SPY - Strong Resistance Incomingđź’Ą
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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