SPY: Breaking Important Resistance Levels. |WEEKLY UPDATE|The SPY is making an excellent recovery move, which could turn into a real bullish reversal if it continues at this pace.
In our last analysis, last week (when the SPY was at $120), we had already identified a change in sentiment, and warned of a recovery in the medium term. Once again, we managed to get the movement right.
In addition. last week we mentioned the gaps that are still open above the price, and yesterday we closed the second one, which was at $539.43. What's more, the SPY is above the 21-day EMA, entering bullish territory again.
So far we don't see a top signal that could reverse the bullish sentiment, but if the price falls so far as to cancel out yesterday's bullish candle, we'll be in trouble.
For now, the situation seems under control, and in the absence of evidence suggesting a bearish reversal, the uptrend will continue, and the next target is at the next resistance at $554.86.
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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
