Looking for downtrend continuation of the SPY
Updated
SPY has been in a downtrend since the start of January 2022 due to Omicron fears, the invasion of Ukraine, increase in interest rates to combat rising inflation. After breaking the 416 level, price has reached the anchored VWAP (which was placed at the bottom of the COVID crash in 2020) & has since retraced back to the 416 level & started consolidating underneath.
Looking for a break of the 416 level to the upside, then a pause at the fair value areas at 416-424, then a continued retracement towards the fair value area of 432-439, where potential shorting opportunities can arise. Profit targets can be at the 416-424 fair value area, at the anchored VWAP &/or at the 52 week low.
Looking for a break of the 416 level to the upside, then a pause at the fair value areas at 416-424, then a continued retracement towards the fair value area of 432-439, where potential shorting opportunities can arise. Profit targets can be at the 416-424 fair value area, at the anchored VWAP &/or at the 52 week low.
Note
CPI being reported tomorrow Friday. If higher, then price will break to the downside; if lower, then price will break to the upsideNote
Headline CPI: +1.0%Core CPI: +0.6%
Yesterday, the consolidation broke, & closed very weak as traders anticipated bearish data. Down-move may be partially priced in already, but downtrend continuation can still occur - look to enter on pullbacks, pre-market low breakout, or when gap is filled upwards & price may reverse
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