Previously, expected the SPY to make a higher low (orange ellipse). I think it just did.
For the higher low, as expected, It pulled back to that level on 22 Dec 2022, and then near it again on 28 Dec 2022 (higher low!).
Usually, I would use the SPY weekly chart, but this week being the first week of the year, I thought it more appropriate to use the daily chart to break down what happened in the week.
Based on the last two weeks price action, we can draw a (yellow) support line which shows quite clearly that there is a strong support about 379 that has been tested multiple times. Then on Friday, the SPY closed above the last two weeks range. This alone is a clear bullish indication.
MACD is aligned and supportive of a nascent rally; and VolDiv is appears favourable though lagging.
390 appears to be the immediate resistance as well as the 23-week EMA (resistance). Beyond that, expect a nice bullish close beyond 403.5 for a second confirmation. Then to top the cherry, a high/close above 410 establishes the higher high.
Expecting a bullish week to follow through...
For the higher low, as expected, It pulled back to that level on 22 Dec 2022, and then near it again on 28 Dec 2022 (higher low!).
Usually, I would use the SPY weekly chart, but this week being the first week of the year, I thought it more appropriate to use the daily chart to break down what happened in the week.
Based on the last two weeks price action, we can draw a (yellow) support line which shows quite clearly that there is a strong support about 379 that has been tested multiple times. Then on Friday, the SPY closed above the last two weeks range. This alone is a clear bullish indication.
MACD is aligned and supportive of a nascent rally; and VolDiv is appears favourable though lagging.
390 appears to be the immediate resistance as well as the 23-week EMA (resistance). Beyond that, expect a nice bullish close beyond 403.5 for a second confirmation. Then to top the cherry, a high/close above 410 establishes the higher high.
Expecting a bullish week to follow through...
