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Red day on Thursday for SPDR S&P 500

StockInvest.us, 2 weeks ago

StockInvest.us

The SPDR S&P 500 ETF price fell by -0.10% on the last day (Thursday, 12th May 2022) from $392.75 to $392.34. and has now fallen 3 days in a row. During the day the ETF fluctuated 2.77% from a day low at $385.15 to a day high of $395.80. The price has fallen in 6 of the last 10 days and is down by -8.29% for this period. Volume fell on the last day along with the ETF, which is actually a good sign as volume should follow the ETF. On the last day, the trading volume fell by -16 million shares and in total, 126 million shares were bought and sold for approximately $49.37 billion.

The ETF has broken the wide and falling short-term trend down. Firstly a stronger fallrate is indicated, but false breaks and "sell-off" may occur. However, a further fall is realistic and any reactions back to the breaking point ($400.59) are considered to be a "second chance" to get out. According to the fan-theory $350.18 will represent the new bottom line of the next trend, but it is far too early to say this for certain.

SPDR S&P 500 ETF

There are few to no technical positive signals at the moment. The SPDR S&P 500 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 $405.22 and $433.00. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Tuesday, March 29, 2022, and so far it has fallen -15.00%. 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 fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

There is no support from accumulated volume below today's level and given the right condition the ETF may perform very badly in the next couple of days.

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 $10.65 between high and low, or 2.77%. For the last week, the ETF has had a daily average volatility of 2.69%.

SPDR S&P 500 holds several negative signals and is within a wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this ETF.

Check full SPDR S&P 500 ETF forecast and analysis here.