SPY Technical Breakdown: Bullish Momentum Building into Key Resistance Zones
Analyzing the SPDR S&P 500 ETF Trust (SPY) on the 4-hour timeframe. As of the latest candle, SPY trades at $547.37, up 0.15%, and is showing signs of sustained bullish momentum after a recent pullback. For swing and short-term traders, this setup could present a strategic opportunity.
🔍 Price Action and Volume Analysis
SPY has shown a textbook recovery from April lows, bouncing cleanly from support around the S2 pivot at $515.50. Volume is also increasing on up candles, indicating institutional buyers may be stepping in. The 4-hour chart structure suggests a healthy uptrend with higher highs and higher lows.
🎯 Key Fibonacci Pivots and Resistance Zones
This chart includes weekly Fibonacci pivots, providing clear areas to watch:
R1: $530.33
R2: $545.15
R3: $554.32
Currently, SPY is trading just above R2. If it breaks and holds above this level, the next target lies at R3, which could act as a resistance zone and potential area for profit-taking.
🧠 Indicator Insights: VWAP and Bollinger Band Strategy
The lower chart panel features a strategy combining VWAP and Bollinger Bands, labeled "BBofVWAP with entry at Pivot Point." It triggered a +40 signal recently near the VWAP-Pivot level, reinforcing the bullish thesis. The slight expansion in Bollinger Bands hints at rising volatility, possibly paving the way for a bigger move.
📈 Bullish Scenario
If SPY maintains strength above $545.15, we may see a continuation toward $554.32 (R3). A strong close above R3 could signal a bullish breakout with potential to test new highs.
🔻 Bearish Case to Watch
On the flip side, failure to hold above R2 and a breakdown below $530.33 could indicate a bull trap. In this scenario, $515.50 or even $506.34 (S3) could come back into play.
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.