SPY: Short Signal Explained
SPY
- Classic bearish setup
- Our team expects bearish continuation
SUGGESTED TRADE:
Swing Trade
Short SPY
Entry Point - 564.32
Stop Loss - 575.90
Take Profit - 539.83
Our Risk - 1%
Start protection of your profits from lower levels
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SPY trade ideas
SPY My Opinion! SELL!
My dear friends,
Please, find my technical outlook for SPY below:
The price is coiling around a solid key level - 564.32
Bias - Bearish
Technical Indicators: Pivot Points Low anticipates a potential price reversal.
Super trend shows a clear sell, giving a perfect indicators' convergence.
Goal - 539.96
Safe Stop Loss - 577.94
About Used Indicators:
The pivot point itself is simply the average of the high, low and closing prices from the previous trading day.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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WISH YOU ALL LUCK
SPY (S&P500 ETF) - Testing Key Resistance Levels - Weekly ChartSPY (S&P500 ETF) is currently attempting an uptrend rally, bouncing up from the April 7th 2025 support level ($488) and weekly support trendline.
The current resistance price level is $569 above, and the support price level below is $555.
SPY price needs to remain and close above $522 in May 2025 to maintain the current uptrend rally.
Resistance price targets above: $569, $578, $600, $610.
Support price targets below: $555, $542, $533, $512.
Tariff and trade deal news, corporate earnings, government law changes, and consumer sentiment will continue to affect the stock price action of SPY.
Support price levels need to hold for an uptrend to continue in 2025.
Nightly $SPY / $SPX Scenarios for May 23, 2025 🔮 Nightly AMEX:SPY / SP:SPX Scenarios for May 23, 2025 🔮
🌍 Market-Moving News 🌍
🇬🇧 Global Bond Yields Signal Rising Term Premium
Long-dated government bond yields in the U.S., U.K., and Japan surged, with the U.S. 30-year Treasury yield touching 5.09%, as investors demand higher compensation for locking in funds amid mounting debt and inflation risks
🏗️ Komatsu Sees Tariff Relief
Komatsu’s CEO says a recent U.S.–China trade truce may cut the company’s tariff hit by $140 million, easing cost pressures on its U.S. operations and brightening machinery sector outlook
📉 U.S. Stocks End Flat as Yields Ease
Wall Street closed little changed, with the S&P 500 and Dow finishing flat and the Nasdaq up 0.3%, after Treasury yields retreated slightly following recent spikes
📊 Key Data Releases 📊
📅 Friday, May 23:
🏠 New Home Sales (10:00 AM ET)
Reports the number of newly signed contracts for single-family homes, a direct gauge of housing demand and consumer confidence.
⚠️ Disclaimer:
This information is for educational and informational purposes only and should not be construed as financial advice. Always consult a licensed financial advisor before making investment decisions.
📌 #trading #stockmarket #economy #news #trendtao #charting #technicalanalysis
Engineering the Hull‑style Exponential Moving Average (HEMA)▶️ Introduction
Hull’s Moving Average (HMA) is beloved because it offers near–zero‑lag turns while staying remarkably smooth. It achieves this by chaining *weighted* moving averages (WMAs), which are finite‑impulse‑response (FIR) filters. Unfortunately, FIR filters demand O(N) storage and expensive rolling calculations. The goal of the Hull‑style Exponential Moving Average (HEMA) is therefore straightforward: reproduce HMA’s responsiveness with the constant‑time efficiency of an EMA, an infinite‑impulse‑response (IIR) filter that keeps only two state variables regardless of length.
▶️ From FIR to IIR – What Changes?
When we swap a WMA for an EMA we trade a hard‑edged window for an exponential decay. This swap creates two immediate engineering challenges. First, the EMA’s centre of mass (CoM) lies closer to the present than the WMA of the same “period,” so we must tune its alpha to match the WMA’s effective lag. Second, the exponential tail never truly dies; left unchecked it can restore some of the lag we just removed. The remedy is to shorten the EMA’s time‑constant and apply a lighter finishing smoother. If done well, the exponential tail becomes imperceptible while the update cost collapses from O(N) to O(1).
▶️ Dissecting the Original HMA
HMA(N) is constructed in three steps:
Compute a *slow* WMA of length N.
Compute a *fast* WMA of length N/2, double it, then subtract the slow WMA. This “2 × fast − slow” operation annihilates the first‑order lag term in the transfer function.
Pass the result through a short WMA of length √N, whose only job is to tame the mid‑band ripple introduced by step 2.
Because the WMA window hard‑cuts, everything after bar N carries zero weight, yielding a razor‑sharp response.
▶️ Re‑building Each Block with EMAs
1. Slow leg .
We choose αₛ = 3 / (2N − 1) .
This places the EMA’s CoM exactly one bar ahead of the WMA(N) CoM, preserving the causal structure while compensating for the EMA’s lingering tail.
2. Fast leg .
John Ehlers showed that two single‑pole filters can cancel first‑order phase error if they keep the ratio τ𝑓 = ln2 / (1 + ln2) ≈ 0.409 τₛ .
We therefore compute α𝑓 = 1 − e^(−λₛ / 0.409) ,
where λₛ = −ln(1 − αₛ).
3. Zero‑lag blend .
Instead of Hull’s integer 2/−1 pair we adopt Ehlers’ fractional weights:
(1 + ln 2) · EMA𝑓 − ln 2 · EMAₛ .
This pair retains unity DC gain and maintains the zero‑slope condition while drastically flattening the pass‑band bump.
4. Finishing smoother .
The WMA(√N) in HMA adds roughly one and a half bars of consequential delay. Because EMAs already smear slightly, we can meet the same lag budget with an EMA whose span is only √N / 2. The lighter pole removes residual high‑frequency noise without re‑introducing noticeable lag.
▶️ Error Budget vs. Classical HMA
Quantitatively, HEMA tracks HMA to within 0.1–0.2 bars on the first visible turn for N between 10 and 50. Overshoot at extreme V‑turns is 25–35 % smaller because the ln 2 weighting damps the 0.2 fs gain peak. Root‑mean‑square ripple inside long swings falls by roughly 15–20 %. The penalty is a microscopic exponential tail: in a 300‑bar uninterrupted trend HEMA trails HMA by about two bars—visually negligible for most chart horizons but easily fixed by clipping if one insists on absolute truncation.
▶️ Practical Evaluation
Side‑by‑side plots confirm the math. On N = 20 the yellow HEMA line flips direction in the same candle—or half a candle earlier—than the blue HMA, while drawing a visibly calmer trace through the mid‑section of each swing. On tiny windows (N ≤ 8) you may notice a hair more shimmer because the smoother’s span approaches one bar, but beyond N = 10 the difference disappears. More importantly, HEMA updates with six scalar variables; HMA drags two or three rolling arrays for every WMA it uses. On a portfolio of 500 instruments that distinction is the difference between comfortable real‑time and compute starvation.
▶️ Conclusion
HEMA is not a casual “replace W with E” hack. It is a deliberate reconstruction: match the EMA’s centre of mass to the WMA it replaces, preserve zero‑lag geometry with the ln 2 coefficient pair, and shorten the smoothing pole to offset the EMA tail. The reward is an indicator that delivers Hull‑grade responsiveness and even cleaner mid‑band behaviour while collapsing memory and CPU cost to O(1). For discretionary traders wedded to the razor‑sharp V‑tips of the original Hull, HMA remains attractive. For algorithmic desks, embedded systems, or anyone streaming thousands of symbols, HEMA is the pragmatic successor—almost indistinguishable on the chart, orders of magnitude lighter under the hood.
$SPY – Bearish RSI Divergence + Gap Below = Risky Setup👀 The RSI divergence has been signaling weakness for several sessions — with lower highs on momentum while price made higher highs.
And now, we’re stalling right at a volume shelf (see VRVP) with a big unfilled gap looming just below.
⚠️ Things to watch:
Bearish RSI divergence ✔️
Price breakdown confirmation below $582
Gap fill target = ~$572
VRVP shows thin volume beneath current price
If momentum rolls over from here, this could accelerate fast into that gap zone.
Nightly $SPY / $SPX Scenarios for May 22, 2025 🔮 Nightly AMEX:SPY / SP:SPX Scenarios for May 22, 2025 🔮
🌍 Market-Moving News 🌍
📈 Treasury Yields Surge Amid Weak Bond Auction
U.S. Treasury yields continued their upward trajectory, with the 10-year yield nearing 4.6% and the 30-year yield surpassing 5%, marking the highest levels since early 2023. This increase followed a weak $16 billion auction of 20-year bonds, which attracted less investor demand and sold at higher-than-expected yields. Factors contributing to the rise include fading recession fears, persistent inflation concerns, and growing fiscal worries related to potential tax cut extensions.
📉 Stock Market Declines as Tech Stocks Retreat
The stock market experienced significant losses, with the Dow Jones Industrial Average dropping 1.9%, falling below its 200-day moving average. The S&P 500 and Nasdaq fell 1.6% and 1.4%, respectively.
💼 Snowflake ( NYSE:SNOW ) Reports Strong Earnings
Snowflake Inc. reported record quarterly revenue of $1.04 billion, surpassing expectations. Product revenue increased 26% year-over-year to $996.8 million. The company raised its full-year forecast to $4.325 billion, reflecting a 25% year-over-year increase. Despite a GAAP net loss of $430 million, Snowflake posted an adjusted profit of 24 cents per share, exceeding the 21-cent estimate.
📊 Morgan Stanley Turns Bullish on U.S. Stocks
Morgan Stanley has shifted to a bullish stance on U.S. stocks and bonds, raising its outlook due to signs of market stabilization and improving growth conditions. The bank maintains a base target of 6,500 for the S&P 500 by mid-2026, with a bullish scenario projecting 7,200.
📊 Key Data Releases 📊
📅 Thursday, May 22:
8:30 AM ET: Initial Jobless Claims
9:45 AM ET: S&P Global Flash U.S. Services PMI for May
10:00 AM ET: Advance Services Report (First Quarter 2025)
⚠️ Disclaimer:
This information is for educational and informational purposes only and should not be construed as financial advice. Always consult a licensed financial advisor before making investment decisions.
📌 #trading #stockmarket #economy #news #trendtao #charting #technicalanalysis
SPY trend reversal linear analysis, with parallel stackingAll the annotations speak for themselves...
but just a simple idea to see if there are levels that make sense if the descending line were to be reversed and applied to the ascending trend.
Have to follow those rules, and if too cluttered on choppy weeks- then hold the bottom line and only increase the newest line if you have price chopping greater than the height of the biggest candle in said chop.
ergo, if the biggest candle is say 4 point up from the last trend line off the inception permanent line ascending trend, then hold that line at the high of that day until price breaks above it. If chops continues above it, then draw another parallel 4 points (the height of that largest candle before the chop started) above the original line and hold it there until the chop continues up or is reverts and heads back down.
If you want to see if chop is a flag formation, then take the above example of a big candle up marking a new parallel line high and see if price for 3-4 days stays within it, pull down another parallel from that high and put it on that low...will allow for visual where the flag boundaries may be...
BTC 4hr examples:
SPY volatility this weekI'm posting the rest of the readings I did for each week this month on SPY. This week I'm expecting a drop into Wed. I get all my info from dowsing, btw.
I noticed all last week it kept suggesting to sell rallies, which makes me thing we're going to pull back. The weekly (done at the beginning of the month) did suggest over 5% down this week. But my dowsing now says to watch for a bounce Wed. with a look below & fail. Move up to some extent Wed. & reverse down Thursday (implies gap up or some up). Then Friday up. Short term watching the $575 area for the bounce or resumption of trend.
Next week's reading of down more is a bit of a head scratcher, so that's why I think things could just be really volatile.
Low on QQQ I'm looking for is 498.
SPY (S&P 500 ETF) Weekly Technical Analysis4H Chart (Short-Term View)
Trend: Ongoing bullish momentum with dominant green candles.
Key Breakout: Strong breakout above the $594–$596 resistance zone, which now acts as support.
Volume Profile (VPVR): A low-volume area between $595 and $610 suggests potential for a swift move higher.
Indicators: The Ichimoku Cloud shows rising support, with positive band compression.
Projection: As long as the price holds above $594, there is potential to test the $610–$615 area.
Daily Chart (Medium-Term View)
Fibonacci Levels: The 0.786 level was broken decisively, indicating strong bullish momentum.
Trend: Clearly bullish, supported by declining volume on pullbacks and steady upward movement.
Volume: Consistent increase in buying volume since April strengthens the bullish case.
Upcoming Resistance: $610–$615 (previous highs).
Weekly Chart (Long-Term View)
Recovery: A solid rebound from the March lows.
VPVR: The high-volume node between $455 and $475 has been left behind, now acting as a structural support.
Macro Trend: Price has returned to a previous consolidation area from the prior bull market.
Risks: While there is room for further upside, the $610 area could act as both technical and psychological resistance.
Key Levels
Immediate Resistance: $610–$615
Technical Support: $594–$596
Structural Support: $560 (significant volume cluster)
Conclusion
SPY maintains a strong bullish structure across all timeframes, with sustained upward momentum and room to challenge previous highs. The reaction around the $610 zone will be critical. As long as price holds above $594, the structure remains favorable for buyers. However, given the lack of historical volume in this price range, short-term volatility or pullbacks are possible.
Disclaimer:
This analysis is intended for informational and educational purposes only. It does not constitute financial advice or an investment recommendation. Always assess your own risk profile and consult a licensed professional before making investment decisions.
SPY Breakout Watch: Triangle Pressure Builds Above 590SPY has surged in a strong V-shaped recovery from the March low of ~480 to testing major resistance around 595–600. The daily chart shows sustained higher highs and higher lows, but price now stalls at a key supply zone with multiple doji candles—signaling indecision. A rising trendline provides strong support near 570.
Zooming into the 60-minute chart, SPY forms an ascending triangle with flat resistance at 590 and rising support from 584. Volume contraction suggests accumulation, priming a potential breakout. A 60-min close above 590 targets 596, with a stop under 588.
On the 15-minute timeframe, bull-flags form frequently after morning gaps, with breakouts typically launching 4–5 points higher. VWAP and the 20-MA converge near 588.5, making it an ideal pullback entry zone.
Strategy for May 19–23:
Long on a clean breakout above 590 (target: 594–596)
Stop under 587.5–588
Caution if daily closes below 570
Expect early-week upside tests of 590–594, followed by a potential breakout toward 595–600. If a high-volume rejection occurs near that zone, a quick scalp-short may be in play.