SPY Breakout Watch: Triangle Pressure Builds Above 590

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SPY 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.

Penafian

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