04/10/2023 $spy Supply and Demand Zones and Breakouts
Please note that I am not a financial advisor and this is not investment advice. You should do your own research and consult a professional before making any trading decisions.
Based on the 15-minute intraday chart of SPDR S&P 500 ETF (SPY) as of April 7, 2021, here is my analysis:
Supply Zone: $409.50 - $410.00 Demand Zone: $405.50 - $406.00
These zones are based on the price action that occurred before the strong moves in either direction. A supply zone is where sellers outnumber buyers and push the price down, while a demand zone is where buyers outnumber sellers and push the price up12.
Support and Resistance:
The current support level is around $408.00, which was tested several times on April 7 and held as a floor for the price. The current resistance level is around $409.50, which was also tested several times on April 7 and acted as a ceiling for the price.
If the price breaks above the resistance level and the supply zone, the next potential supply zone could be around $411.00 - $411.50, which was the previous high on March 17. If the price breaks below the support level and the demand zone, the next potential demand zone could be around $403.00 - $403.50, which was the previous low on April 5.
Technical Analysis:
The SPY is trading above its 50-period and 200-period moving averages on the 15-minute chart, indicating an overall bullish trend. However, the price has been consolidating in a narrow range between $408.00 and $409.50 for most of April 7, suggesting a lack of momentum and direction.
The MACD indicator is hovering around zero, showing no clear signal of a trend change. The RSI indicator is also near 50, indicating a neutral market condition.
Fundamental Analysis:
The SPY tracks the performance of the S&P 500 index, which is a broad measure of the US stock market. The S&P 500 index has been hitting new record highs recently, driven by optimism about the economic recovery from the pandemic, vaccine rollouts, stimulus measures, and corporate earnings.
However, some risks and challenges remain, such as rising inflation expectations, higher bond yields, geopolitical tensions, and potential tax hikes.
News and Events:
Some of the recent news and events that may have an impact on the SPY are:
The Federal Reserve released the minutes of its March meeting on April 7, which showed that most policymakers agreed to keep monetary policy accommodative until the economy reaches its goals of maximum employment and inflation3.
The US trade deficit widened to a record high of $71.1 billion in February, as imports surged while exports declined due to severe winter weather4.
President Joe Biden announced a HKEX:2 trillion infrastructure plan on March 31, which aims to boost spending on roads, bridges, broadband, clean energy, and other projects over eight years5.
The US added 916,000 jobs in March, beating expectations and signaling a strong rebound in the labor market. The unemployment rate fell to 6%, while the labor force participation rate rose to 61.5%6.
Sentiment Analysis:
The sentiment analysis is based on the social media activity and opinions of traders and investors about the SPY.
According to Stocktwits.com, a popular platform for stock market discussions, the SPY has a bullish sentiment score of 63%, as of April 77. This means that more users are positive than negative about the SPY’s outlook.
According to Tradingview.com, another popular platform for chart analysis and trading ideas, the SPY has a buy signal based on technical indicators, as of April 78. This means that most indicators are suggesting an upward movement for the SPY.
Quantitative Analysis:
The quantitative analysis is based on some statistical measures and ratios that can help evaluate the SPY’s performance and valuation.
According to Yahoo Finance3, some of these measures are:
Price-to-Earnings Ratio (P/E): 40.67
Price-to-Book Ratio (P/B): 4.28
Price-to-Sales Ratio (P/S): 3.02
Dividend Yield: 1.36%
Beta: 1.00
Sharpe Ratio: 0.96
Sortino Ratio: 1.46
These measures and ratios can help compare the SPY with other ETFs or stocks in terms of profitability, growth, risk, and valuation. Generally, higher ratios indicate better performance and lower ratios indicate worse performance. However, these ratios should not be used in isolation and should be considered along with other factors such as market conditions, fundamentals, and technical.
Based on the 15-minute intraday chart of SPDR S&P 500 ETF (SPY) as of April 7, 2021, here is my analysis:
Supply Zone: $409.50 - $410.00 Demand Zone: $405.50 - $406.00
These zones are based on the price action that occurred before the strong moves in either direction. A supply zone is where sellers outnumber buyers and push the price down, while a demand zone is where buyers outnumber sellers and push the price up12.
Support and Resistance:
The current support level is around $408.00, which was tested several times on April 7 and held as a floor for the price. The current resistance level is around $409.50, which was also tested several times on April 7 and acted as a ceiling for the price.
If the price breaks above the resistance level and the supply zone, the next potential supply zone could be around $411.00 - $411.50, which was the previous high on March 17. If the price breaks below the support level and the demand zone, the next potential demand zone could be around $403.00 - $403.50, which was the previous low on April 5.
Technical Analysis:
The SPY is trading above its 50-period and 200-period moving averages on the 15-minute chart, indicating an overall bullish trend. However, the price has been consolidating in a narrow range between $408.00 and $409.50 for most of April 7, suggesting a lack of momentum and direction.
The MACD indicator is hovering around zero, showing no clear signal of a trend change. The RSI indicator is also near 50, indicating a neutral market condition.
Fundamental Analysis:
The SPY tracks the performance of the S&P 500 index, which is a broad measure of the US stock market. The S&P 500 index has been hitting new record highs recently, driven by optimism about the economic recovery from the pandemic, vaccine rollouts, stimulus measures, and corporate earnings.
However, some risks and challenges remain, such as rising inflation expectations, higher bond yields, geopolitical tensions, and potential tax hikes.
News and Events:
Some of the recent news and events that may have an impact on the SPY are:
The Federal Reserve released the minutes of its March meeting on April 7, which showed that most policymakers agreed to keep monetary policy accommodative until the economy reaches its goals of maximum employment and inflation3.
The US trade deficit widened to a record high of $71.1 billion in February, as imports surged while exports declined due to severe winter weather4.
President Joe Biden announced a HKEX:2 trillion infrastructure plan on March 31, which aims to boost spending on roads, bridges, broadband, clean energy, and other projects over eight years5.
The US added 916,000 jobs in March, beating expectations and signaling a strong rebound in the labor market. The unemployment rate fell to 6%, while the labor force participation rate rose to 61.5%6.
Sentiment Analysis:
The sentiment analysis is based on the social media activity and opinions of traders and investors about the SPY.
According to Stocktwits.com, a popular platform for stock market discussions, the SPY has a bullish sentiment score of 63%, as of April 77. This means that more users are positive than negative about the SPY’s outlook.
According to Tradingview.com, another popular platform for chart analysis and trading ideas, the SPY has a buy signal based on technical indicators, as of April 78. This means that most indicators are suggesting an upward movement for the SPY.
Quantitative Analysis:
The quantitative analysis is based on some statistical measures and ratios that can help evaluate the SPY’s performance and valuation.
According to Yahoo Finance3, some of these measures are:
Price-to-Earnings Ratio (P/E): 40.67
Price-to-Book Ratio (P/B): 4.28
Price-to-Sales Ratio (P/S): 3.02
Dividend Yield: 1.36%
Beta: 1.00
Sharpe Ratio: 0.96
Sortino Ratio: 1.46
These measures and ratios can help compare the SPY with other ETFs or stocks in terms of profitability, growth, risk, and valuation. Generally, higher ratios indicate better performance and lower ratios indicate worse performance. However, these ratios should not be used in isolation and should be considered along with other factors such as market conditions, fundamentals, and technical.
Penafian
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