Green day on Wednesday for SPY ETF after gaining 0.0375%

The SPY ETF price gained 0.0375% on the last trading day (Wednesday, 25th Jan 2023), rising from $400.20 to $400.35. During the last trading day the ETF fluctuated 1.81% from a day low at $393.56 to a day high of $400.70. The price has risen in 6 of the last 10 days and is up by 2.5% 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, 23 million more shares were traded than the day before. In total, 81 million shares were bought and sold for approximately $32.50 billion.

The ETF is moving within a horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect SPY ETF with a 90% probability to be traded between $383.03 and $415.44 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 ETFS seldom manage to go directly from the bottom of a trend up to the top. ETFS 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 $396.41 and $390.26. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). 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 Monday, January 23, 2023, and so far it has fallen -0.0699%. Further fall is indicated until a new bottom pivot has been found.

SPY finds support from accumulated volume at $394.49 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This ETF is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the ETF moved $7.14 (1.81%) between high and low. For the last week, the ETF has had daily average volatility of 1.48%.

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for SPY ETF to perform well in the short-term period.