SPY ETF: how far could the price decline? Trading idea for 22/09
Stock indices have been declining since Wednesday evening after the US Federal Reserve decided to maintain the interest rate at the current level while allowing the possibility of its increase in the future. This decision triggered a surge in selling on the stock market as investors shifted their attention to US government bonds, which offer higher returns compared to dividends from large companies.
With the market moving decisively in one direction, we can analyse it collectively. Our focus today is on the SPY ETF chart, which invests in companies from the S&P 500 index.
On the D1 timeframe, resistance has formed at 445.11 with support at 435.31, which was broken through yesterday, 21 September 2023. The new support level has not yet been established. There is also a clear downward trend on the H1 timeframe. If quotes try to retest the level of 435.11, they may decline further to 422.99.
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Ideas and other content presented on this page should not be considered as guidance for trading or an investment advice. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.87% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
With the market moving decisively in one direction, we can analyse it collectively. Our focus today is on the SPY ETF chart, which invests in companies from the S&P 500 index.
On the D1 timeframe, resistance has formed at 445.11 with support at 435.31, which was broken through yesterday, 21 September 2023. The new support level has not yet been established. There is also a clear downward trend on the H1 timeframe. If quotes try to retest the level of 435.11, they may decline further to 422.99.
—
Ideas and other content presented on this page should not be considered as guidance for trading or an investment advice. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.87% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.