SPY scalping insights for today's session (September 20, 2024)Technical Analysis Overview:
SPY opened with a gap down, reflecting a bearish sentiment following the FOMC. This can indicate volatility at the open as traders digest the implications.
Volume Profile: The visible volume profile shows significant activity around the $565.92 and $568 levels, with a large volume concentration in the $561.38–$560.83 range. This suggests strong support at the $560–$562 range.
Resistance Levels: Immediate resistance around $568.60 (currently price hovering here), followed by $570–$572.88 (marked by the upper volume nodes). Expect profit-taking around these levels.
Moving Averages: The moving averages (20 EMA, 50 EMA) indicate price is hovering below both short-term averages, reinforcing near-term bearish momentum.
Stochastic Indicator: The stochastic is showing an oversold condition with a possible bullish crossover, suggesting that there could be a short-term recovery or bounce at the open.
Price Action & Key Levels:
Immediate Resistance: Around $568.60–$569, where sellers are likely to take profits.
Support Zone: Strong support lies at $565.92. Below this, expect price to test $561.38.
Potential Gap Fill Target: If there’s bullish momentum, the gap to $572.88 (upper resistance) can be tested, but the move should be confirmed with volume and momentum.
Scalping Entry/Exit Strategy:
Entry 1 (Long): If SPY holds above $568, look for bullish confirmation with a stop around $566.5. Target the $570.5–$572.5 range for exit.
Entry 2 (Short): If price breaks below $565.92, enter a short position with a target at $561–$562, placing a stop around $567.5 to manage risk.
Exit Considerations: Use volume spikes or stochastic overbought/oversold conditions for timing exits.
Directional Bias:
Given the post-FOMC gap down, there is cautious sentiment. A bounce to fill the gap is possible, but the overall pressure remains bearish unless buyers strongly defend support zones. Monitor the $565–$568 range closely.
Today’s session might be volatile with rapid swings. Bearish bias persists, but expect possible bounces toward the gap-fill area.
Tight stop losses and quick profit-taking will be critical in today's environment due to possible fakeouts.
