SPY in Downtrend: Key Levels and Trade Setups for Nov. 15, 2024Trading Plan and Technical Analysis for SPY
Overview
SPY has shown a sharp downward trend recently, with price action reflecting bearish momentum. In this setup, I’ll cover important support and resistance levels, supply and demand zones, and potential entry/exit points for both scalping and swing trades.
Key Levels
Support Zones:
$591: This is the immediate support level. A break below this could signal further downside momentum.
$585: If SPY fails to hold above $591, this level becomes the next target and is a key zone where buyers may step in.
Resistance Zones:
$594.34 - $594.96: This area served as previous support and may now act as resistance. A strong push above this range could indicate a potential reversal.
$599.16: If SPY can break through $594 with volume, the next significant resistance is around $599.
Price Action & Supply/Demand Zones
Demand Zone: Between $585 and $591, where SPY may find buying interest if the downward pressure subsides.
Supply Zone: The region around $594.34 - $594.96. If price approaches this zone, watch for potential selling or resistance unless there’s a strong breakout.
Order Blocks & Market Structure
Bearish Order Block: Around $594.34 - $594.96, where sellers previously gained control. This area is a critical level for bears to defend if the downtrend is to continue.
Potential Bullish Reversal: If SPY can reclaim and hold above $594.96, it could signal a shift toward bullish sentiment, at least for a short-term bounce.
Entry & Exit Suggestions
Scalping Entry: For short scalps, look to enter around $591 on breakdowns or quick bounces, targeting $588 with a tight stop above $592.
Swing Trade Entry: Consider entering near $585 if SPY reaches this level and shows signs of support, with a potential target around $594.34. Use a stop-loss below $584 to manage risk.
Directional Outlook
Bearish Scenario: If SPY fails to hold $591, look for further downside, with $585 as the next key target.
Bullish Reversal Potential: For a bullish reversal, SPY needs to break above $594.96 with volume. This could lead to a short-term move toward $599.16.
Thoughts and Suggestions
With the current downtrend, scalpers should focus on quick plays around the support levels. Swing traders may find opportunity if SPY shows signs of strength at $585, but it’s crucial to be cautious until a clearer reversal signal emerges.
Disclaimer
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research and consult with a financial advisor before making trading decisions.
