Red day on Friday for SPY

The SPY ETF price fell by -1.05% on the last day (Friday, 2nd Sep 2022) from $396.42 to $392.24. During the last trading day the ETF fluctuated 2.88% from a day low at $390.33 to a day high of $401.56. The price has fallen in 7 of the last 10 days and is down by -7.08% for this period. Volume has increased on the last day by 21 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 100 million shares were bought and sold for approximately $39.04 billion.

The ETF has broken the wide and weak rising short-term trend down. This signalizes a slower rate of rising, but may also be an early warning about a possible trend shift. Due to the trend being broken there will now be resistance at the bottom line of the trend at $394.48. A reaction back to this level may hold a second chance to get out before further falls.

There are few to no technical positive signals at the moment. The SPY ETF holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $401.36 and $408.71. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Tuesday, August 16, 2022, and so far it has fallen -8.72%. 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). Volume rose on falling prices yesterday. This may be an early warning and the ETF should be followed more closely.

SPY finds support from accumulated volume at $389.80 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This ETF has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the ETF moved $11.23 between high and low, or 2.88%. For the last week, the ETF has had daily average volatility of 1.88%.

SPY is oversold on RSI14 (18). Some ETFS may drop long and hard while being oversold on RSI before turning, which increases the general risk.

The SPY ETF holds several negative signals and despite the positive trend, we believe SPY will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this ETF.