fyre2020

SPY Liquidity Tells the Story

Long
AMEX:SPY   SPDR S&P 500 ETF TRUST
There's great potential for a bullish move to 509.79. There's a nice inverse H&S set up on the 30 min chart, with liquidity to grab at 508 to push further to the upside, we just got a retest & bounce off the 5 daily SMA to the upside as well. If bullish, 509.79 would be a great key level to take all profit. I wouldn't leave runners simply because there's a lot of sellers waiting at this level and previous bullish rejection. However, we must also prepare in case we have bearish activity. As of now, we are in a bullish trend but if we have a move down there is sufficient liquidity to grab on the way down at 505. These liquidity levels are very important to watch because they may provide the momentum we need for a strong continuation in either direction. PCE report is on Thursday so the market may chop with little movement and returning to the 5 Day SMA for safety until then. Thursday may be the day where we reach new highs or grab large liquidity at 505 to the downside. Keep a close eye on the QQQ as a potential catalyst. This is my market context analysis for the week. Let's print money!!
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