The SPY is due for a pullback. It’s been overextended after a strong rally, with key indicators like RSI showing overbought conditions. Currently in a W5 leg, we're waiting on EV3 or Treverse to fire, as these RevAlerts indicators have shown an excellent track record, as seen on the 8h chart.
Additionally, economic uncertainty, rising bond yields, and/or upcoming Fed decisions could trigger profit-taking. Traders know markets rarely move in a straight line, and healthy pullbacks often follow extended runs. Let's see what the week brings!
Nota
DECEMBER 10 UPDATEThe SPY, still in the Wave 5 sequences mentioned 9 days ago, just printed 2 consecutive red candlesticks after a strong upswing, hinting sellers are stepping in. We’ve seen price break below short-term moving averages, and daily candlesticks are forming lower highs, suggesting a loss of upward momentum. The volume is picking up slightly on these down days, showing increased selling pressure. If this continues, it could signal the start of the more substantial pullback we mentioned in the post above, as traders take profits and technical indicators cool off.
Recent high was 609.07, today's close was 602.80.
We still see this ETF falling to the 590 level this Dec.
Be alert.
Trade green.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.