SPY ETF downgraded to Hold/Accumulate

The SPY ETF price gained 0.756% on the last trading day (Thursday, 7th Nov 2024), rising from $591.05 to $595.52. It has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the ETF fluctuated 0.615% from a day low at $593.00 to a day high of $596.65. The price has risen in 6 of the last 10 days and is up by 2.81% over the past 2 weeks. Volume fell on the last day by -21 million shares and in total, 41 million shares were bought and sold for approximately $24.35 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

The ETF has broken the narrow and weak rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $594.97, a level that may pose a second chance to hit a runner. According to fan-theory $620.84 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

The SPY ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the ETF. 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 $578.94 and $576.60. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, September 06, 2024, and so far it has risen 10.20%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The ETF should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

SPY finds support from accumulated volume at $570.98 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 ETF. During the last day, the ETF moved $3.65 between high and low, or 0.615%. For the last week the ETF has had daily average volatility of 0.90%.

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.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Strong Buy to a Hold/Accumulate candidate.