SPY ETF upgraded to Strong Buy Candidate

The SPY ETF price gained 1.71% on the last trading day (Thursday, 19th Sep 2024), rising from $561.40 to $570.98. During the last trading day the ETF fluctuated 0.84% from a day low at $568.08 to a day high of $572.88. The price has risen in 8 of the last 10 days and is up by 3.89% 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, 12 million more shares were traded than the day before. In total, 66 million shares were bought and sold for approximately $37.87 billion.

The ETFis at the upper part of a horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $571.84 will give a strong buy signal and a trend shift could be expected.Given the current horizontal trend, you can expect SPY ETF with a 90% probability to be traded between $531.26 and $581.67 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 ETF seldom manage to go directly from the bottom of a trend up to the top. ETF 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 $561.97 and $549.88. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, August 05, 2024, and so far it has risen 10.36%. Further rise is indicated until a new top pivot has been found. 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. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

SPY finds support from accumulated volume at $543.01 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 $4.80 between high and low, or 0.84%. For the last week the ETF has had daily average volatility of 0.90%.

SPY holds several positive signals and is considered to be a good choice at current levels. We expect the SPY ETF to perform great in the short-term period.We have upgraded our analysis conclusion for this ETF since the last evaluation from a Hold/Accumulate to a Strong Buy candidate.