Technical Pulse – SPDR S&P 500 ETF Trust (Bullish)

SPDR S&P 500 Trust (US: SPY) has been trending up for a year and its long term technicals show further upside. We expect a slight correction this week before resumption of the rally:

 

  1. Price is trending above all Ichimoku indicators as well as both the primary and secondary uptrend lines. This signals a continuing uptrend.
  2. The resistance level has been tested four times in recent price action, indicating a weakening resistance. However, a potential short term reversal is likely due to the appearance of Doji candles and lower volumes below the 10-period moving average the past 4 days signalling slowing price momentum.
  3. We expect prices to rise to the 161.8% and 200.00% expansion levels of US$371.94-398.01.
  4. We will likely see a correction to the 23.8% and 38.2% Fibonacci retracement levels before seeing a rebound to the target prices.

 

*Expected timeline of the trade is 10 weeks from the date of report issuance.

 

CHART LEGENDS

 

Ichimoku Kinko Hyo

Red dotted line: 9 period Tenkan-Sen

Blue dotted line: 26 period Kijun-Sen

Green Line B: 52 period Senkou Span B

Pink Line A: 26 period Senkou Span A

Black line: 26 period Chikou-Span. (Lagging line)

Disclaimer

We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors like (but not limited to) a stock`s risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final recommendation
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