Weaker technical forecast for SPY as ETF downgraded to Hold/Accumulate.

The SPY ETF price gained 1.60% on the last trading day (Tuesday, 25th Oct 2022), rising from $378.87 to $384.92. It has now gained 4 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 1.74% from a day low at $378.67 to a day high of $385.25. The price has risen in 6 of the last 10 days and is up by 7.6% over the past 2 weeks. Volume fell on the last day by -5 million shares and in total, 78 million shares were bought and sold for approximately $30.02 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 ETFhas broken the wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $381.31, a level that may pose a second chance to hit a runner. According to fan-theory $422.22 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 stock, but the ETF has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $372.85 and $375.86. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, October 12, 2022, and so far it has risen 7.95%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). 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.

SPY finds support from accumulated volume at $373.20 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This ETF is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the ETF moved $6.58 (1.74%) between high and low. For the last week, the ETF has had daily average volatility of 2.13%.

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 Buy to a Hold/Accumulate candidate.