* SPY/SPX Update 3/24*Hello degenerates,
I am going to try and post daily updates on SPY/SPX to help me with my analysis and preparation for next day trades.
If you follow my analysis, you are aware that we have 2 possible scenarios being played out but I'll be using the bullish scenario for this analysis. This doesn't mean that the bearish scenario is invalidated.
As we all know, price is now moving towards our W3 target at $580. If you haven't gotten in a play yet, I might have some good news: We might be able to have an opportunity to buy in the move tomorrow. I do have to let you know that it will be EXTREMELY RISKY.
BUY IN OPPORTUNITY:
- As you can see in the image, the close we have today kinda imitates the close we had on March 14th.
- If you zoom in, you can see that price closed with a strong rejection and is trailing back under the previous high of the day. You can also see the volume peak that happened in both days which means that sellers stepped in when price hit that level.
- I can see price opening around the $572 range and possibly even testing the 570 breakout since it is now a Whale Target(WT).
- After that, I do believe we will continue with a strong impulse to finish W3.
- On the 1Month Volume profile, you can see that we are in the range of a Volume peak, so I do want to see this level hold support for a continuation towards $580.
- You can also see RSI giving us Lower Highs while price is on Higher highs, and MACD histogram below zero. This means that the SPY/SPX is oversold and needs a little breather. An RSI dip towards 60 will be a good level for a bounce to continue to uptrend.
- In the 5D Volume Profile, you can see that we hit a volume peak and got rejected, and if we can't hold the 572 level, a dip to 570 is where we will find support.
I DO HAVE TO REMIND YOU , during strong trends dips and corrections can just be disregarded (shoutout to my mentor for passing down the knowledge.) This is just a possible scenario that might happen tomorrow due to how we closed today. Buyers are really aggressive and we like it that way, so if you can't find a buy opportunity, don't sweat it. Save your capital and wait for another opportunity.
This is my analysis for today, the main purpose was to find a trade opportunity for tomorrow and share the insight with you. Let me know what you think about it, and how I can make it better!