Green day on Tuesday for SPY

The SPY ETF price gained 0.0409% on the last trading day (Tuesday, 17th Sep 2024), rising from $562.84 to $563.07. It has now gained 7 days in a row. It is not often that ETF manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the ETF fluctuated 1.03% from a day low at $560.80 to a day high of $566.58. The price has risen in 7 of the last 10 days and is up by 1.98% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 8 million more shares were traded than the day before. In total, 42 million shares were bought and sold for approximately $23.62 billion.

The ETFis at the upper part of a horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $564.92 will give a strong buy signal and a trend shift could be expected.Given the current horizontal trend, you can expect SPY ETF with a 90% probability to be traded between $527.27 and $571.98 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and ETF seldom manage to go directly from the bottom of a trend up to the top. ETF turning up in the middle of a horizontal trend are therefore considered to be potential runners.

The SPY ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $556.66 and $548.75. A breakdown below any of these levels will issue sell signals. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Friday, August 30, 2024, and so far it has fallen -0.108%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

SPY finds support from accumulated volume at $543.01 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the ETF tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the ETF moved $5.78 between high and low, or 1.03%. For the last week the ETF has had daily average volatility of 1.26%.

Since the SPY has been rising for 7 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.

SPY holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.