This
SPY
analysis derives from a strategy I've put together over the past few months, based solely on the price movement prior to and following the COVID crash. It uses these two price points to calculate future key level ranges. The results of this system have been surprisingly reliable across the board for all equity markets.
In terms of the S&P 500 (
SPY
) -- I have identified $353.83 as the 'technical bottom' for
SPY
, at least in terms of shorter-term technicals. With a quick look at either the Volume Profile or Bollinger Bands, we can identify this area as the last unfilled zone of insufficient price action. Price almost always comes back to re-test these zones. However, given that traders are using the candle directly ABOVE this level as present support, I have little faith that they will continue buying once price drops below and does test 353.83.. it is more likely that this will only intensify the selloff, led by the Nasdaq and tech.
In the big picture, I believe SPY will reject 353.83 and ultimately find itself back at its Pre-COVID high ($321.86). This will mark the second break of the trend line dating back to 2011.
The trend first broke in 2020 amid COVID, but as we all know the markets were bailed by QE. This time will likely yield different results, and I project the bottom of this market to be the midpoint between its Pre-COVID highest close and Post-COVID lowest close, 289.81. This drop would mark almost an exact 40% decline from its peak and a 22% decline from current levels.
All my opinions of course. No FA.
Thank you all for stopping by and I wish you luck amid all the volatility.
SPY
analysis derives from a strategy I've put together over the past few months, based solely on the price movement prior to and following the COVID crash. It uses these two price points to calculate future key level ranges. The results of this system have been surprisingly reliable across the board for all equity markets. In terms of the S&P 500 (
SPY
) -- I have identified $353.83 as the 'technical bottom' for
SPY
, at least in terms of shorter-term technicals. With a quick look at either the Volume Profile or Bollinger Bands, we can identify this area as the last unfilled zone of insufficient price action. Price almost always comes back to re-test these zones. However, given that traders are using the candle directly ABOVE this level as present support, I have little faith that they will continue buying once price drops below and does test 353.83.. it is more likely that this will only intensify the selloff, led by the Nasdaq and tech. In the big picture, I believe SPY will reject 353.83 and ultimately find itself back at its Pre-COVID high ($321.86). This will mark the second break of the trend line dating back to 2011.
The trend first broke in 2020 amid COVID, but as we all know the markets were bailed by QE. This time will likely yield different results, and I project the bottom of this market to be the midpoint between its Pre-COVID highest close and Post-COVID lowest close, 289.81. This drop would mark almost an exact 40% decline from its peak and a 22% decline from current levels.
All my opinions of course. No FA.
Thank you all for stopping by and I wish you luck amid all the volatility.