The technical analysis suggests that SPY may experience sideways movement or a slight downward trend in the very near term, particularly if selling pressure persists. However, a strong reversal could occur if the price breaks above recent highs with increased volume support. Traders should monitor key support and resistance levels and be prepared for potential volatility as the market seeks direction.
The overall forecast appears bullish for SPY in the short-term, but with potential for volatility.
For the week of July 29, SPY is predicted to trade between approximately $560-$580. Specifically:
July 29: $543.71
July 30: $544.68
July 31: $545.45
August 1: $547.68
August 2: $546.17
The overall technical outlook is described as “bullish” for the S&P 500, with support holding at the 50-day simple moving average.
However, there are several factors coming up next week that could introduce volatility, causing a deeper retracement, including:
- Major tech company earnings reports (Microsoft, Meta, Amazon, Apple)
- Federal Open Market Committee (FOMC) meeting
- Bank of Japan monetary policy meeting
- Monthly U.S. jobs report
The forecast notes potential for “heightened volatility” despite the bullish technical outlook.
By the end of 2024, SPY is projected to reach around $600-$641.
SPY Technical Analysis
The chart shows the S&P 500 SPDR (SPY) with various technical indicators. The price is currently at $544.44, with the 50-day moving average at $544.39 and the 200-day moving average at $498.70. The price has recently pulled back slightly from its highs but remains above both moving averages, indicating a generally bullish trend.
Volume analysis reveals relatively stable trading volumes with occasional spikes. The Relative Strength IndexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... More (RSI) is at 46.18, suggesting the market is neither overbought nor oversold.
The On Balance VolumeThe On Balance Volume indicator (OBV) is a technical analysis tool used to measure the flow of money into and out of a security over a specified period of time. It is a cumulative ... More (OBV) has been trending downwards, indicating that more volume is being traded on down days compared to up days, which might suggest weakening momentum.
The Stochastic RSIIn the realm of technical analysis, the Stochastic RSI (StochRSI) emerges as a powerful tool for traders seeking to navigate market dynamics with precision. Developed by Tushar S. ... More is at 0.168, indicating oversold conditions, which could suggest a potential buying opportunity if the trend reverses.
The Chaikin OscillatorNamed after its creator Marc Chaikin, the Chaikin Oscillator stands as a formidable tool in the arsenal of technical analysts. This oscillator is designed to measure the accumulati... More is at -68,160,428, which indicates selling pressure.
The MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... More oscillator shows the MACD line at 1.98 and the signal line at 5.24, with a histogram reading of -3.26, suggesting bearish momentum as the MACD line is below the signal line.
Time-Frame Signals:
For the next 3 months: Hold
For the next 6 months: Hold
For the next 12 months: Buy
Past performance is not an indication of future results. This article should not be considered as investment advice. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions. 🧡
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This content is provided for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to buy any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above content might not be suitable for your particular circumstances. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor.
