In this short term bullish leg, zooming out to the monthly confirms bearish ideology. Using a Fib Retracement from most recent lows in October 2022 to ATH in December 2021, this shows we are bouncing between 50%-61.8% levels. Using these fib levels combined with supply and demand, $SPY could ri
SPY
de this bull wave to potentially $424 (38.2% Retracement) before heading towards its bottom of $312 (1.27% Extension) and potentially $268 (1.61 Extension). While this may be a stretch for that drastic of a move, we are pretty over extended from the 200ema with heavy buying volume at $310-$330 and $240-$280. Bullish Outlook -
Using the same Fib Retracement from the Covid Lows in March 2020 to the ATH in December of 2021, $SPY has retraced to the 50% levels at $341 but has major resistance at $400-$410. One possibility is a decline to the 38.2% level ($310) before chopping between $310 and $372 before eventually breaking out to new highs at $543. Drastic changes to the economy would need to happen before this move was completed - speculating between 2-3 years potentially.