SPY Technical Analysis for October 18, 2024Current Market Structure
From the 1-hour chart, SPY is sitting in an interesting zone with several key levels to watch for tomorrow's trading session:
Support Levels:
582.30: Immediate support, where SPY may try to stabilize.
578.53: Stronger support, previously tested as both resistance and support.
Resistance Levels:
585.28: Immediate resistance overhead. If SPY breaks this, expect bullish continuation.
586.30: The next resistance level to monitor, potentially marking the upper boundary of the trend.
Trendlines: SPY is still within an ascending channel, and the lower trendline (starting around October 11) is providing consistent support for price action. As long as it stays above this trendline, the bullish structure is intact.
Indicators & Volume Insights
Volume: We’ve seen volume decline slightly towards the close, which could mean consolidation before the next move.
Momentum Indicator: There’s a slight uptick in the oscillators, indicating a potential reversal or continuation to the upside. Keep an eye on momentum overnight.
Potential Scenarios for Tomorrow:
Bullish Case: If SPY holds above 582.30 and breaks 585.28, we could see a run toward 586.30 and possibly beyond.
Bearish Case: A break below 582.30 may trigger selling pressure, with 578.53 being the key support level to monitor for further downside.
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Why Some Traders Profit While Others Struggle with the Same TA
Even with identical technical analysis, traders experience different outcomes. Here are a few
common reasons:
Discipline & Emotions: Many traders fail to follow their trading plan or let emotions (fear and greed) interfere.
Risk Management: Profitable traders use proper position sizing and stop losses, while others risk too much on single trades.
Execution: Timing is critical—delays or hesitation can lead to missed or poorly executed entries.
Adaptability: Markets change rapidly, and rigid traders who can’t adapt often miss out, while others thrive by adjusting their strategies.
If you find yourself struggling despite using solid TA, focus on building discipline, refining your execution, and maintaining good risk management practices.
Disclaimer
This analysis is for informational purposes only and does not constitute financial advice. Trading involves risk, and you should only trade with capital you can afford to lose. Past performance is not indicative of future results.
Feel free to PM me if you have any questions or need further clarification. Happy trading! 📊🚀
