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SPY ETF downgraded from Buy Candidate to Hold/Accumulate after Tuesday trading session.

StockInvest.us, 2 weeks ago

StockInvest.us

The SPY ETF price fell by -1.58% on the last day (Tuesday, 30th Apr 2024) from $510.06 to $501.98. During the last trading day the ETF fluctuated 1.51% from a day low at $501.98 to a day high of $509.56. The price has fallen in 6 of the last 10 days and is down by -0.29% for this period. Volume has increased on the last day by 35 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, 75 million shares were bought and sold for approximately $37.76 billion.

The ETF lies in the lower part of a weak rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $496.80 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift.Given the current short-term trend, the ETF is expected to rise 2.82% during the next 3 months and, with a 90% probability hold a price between $510.81 and $543.44 at the end of this 3-month period.

SPY

A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 1.38%. Further rise is indicated until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. 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 $504.92 and $512.72. A break-up above any of these levels will issue buy signals. 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 $495.16 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 $7.58 between high and low, or 1.51%. For the last week the ETF has had daily average volatility of 1.05%.

SPY holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Hold/Accumulate candidate.

Check full SPY forecast and analysis here.