SPY: Pay close attention to these key points. (1H / D Charts)

٢٤ سبتمبر

Daily Chart:

Polarity Change: The previous top at $565.16, which was earlier acting as resistance, now serves as a strong support. This follows the principle of polarity in technical analysis, where resistance often transforms into support once broken. The price has successfully retested this level and bounced, affirming its significance.
Price Momentum: The SPY has been showing continued bullish momentum since August, and the current price action reflects a consolidation phase just above the $565.16 support. This suggests that traders are considering this level important for further upward moves.

1-Hour Chart:

Trend Line Support: The 1-hour chart shows a clear upward trend, with the price following a rising trend line, which acts as support. This trend line has been respected at least twice, showing the strength of the uptrend on this shorter timeframe.
Gap Closed: The chart also highlights a gap that has been closed recently, which may reduce volatility and uncertainty, potentially adding to the momentum for continued upward movement.
Immediate Resistance: The price is seeking the next resistance around $572, which aligns with the ATH resistance on the daily chart. A break above this level could lead to further continuation of the uptrend, potentially targeting new highs.

Conclusion:

SPY is currently in a bullish structure with strong support at $565.16. The 1-hour chart’s rising trend line offers additional confirmation that the uptrend is intact. A breakout above the current resistance at $572 could propel SPY higher, while a break below the trend line or $565.16 support would signal caution. Therefore, the $565 area is the most important support level for SPY, and a potenttial turning point, if lost. For now, the momentum remains positive as long as these support levels hold.

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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.

“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore

All the best,
Nathan.