Double Bottom Today on SPY using the 4hr

7 天前

Key Observations: On the 4hr Timeframe we seen Equal lows today

The SPY price action exhibits a double bottom formation, which is a bullish reversal pattern indicating potential upward movement.
The chart highlights Fair Value Gaps (FVG) for potential entries:

Bullish FVG: Suggests entering long positions upon retest near the zone of $589.38 (green box).

Bearish FVG: Suggests entering short positions upon retest near $588.48 (red box).

Key support and resistance levels are marked:

Previous Day Low: $580.89.

Previous Day High: $591.11.

Highs and Lows (HL) are noted as part of the structure to track the trend.
Volume and Indicators:

A histogram at the bottom of the chart reflects increasing momentum, showing a transition between bullish (green) and bearish (red) trends.
The chart’s reliance on mitigation statistics (e.g., "Bullish 76.7% mitigated, Bearish 99.66% mitigated")
suggests a focus on price efficiency and liquidity grabs.
Market Sentiment:

The presence of a double bottom near the Previous Day Low supports the bullish case.
Bearish FVG implies caution in case of failure to hold above key support zones.
Next Steps:

To ensure I factor in relevant market dynamics for an accurate New York Open projection, I’ll examine recent data (including SPY trends over the past year) and match it with this chart’s technical analysis. I will recheck current pre-market conditions and gather additional insights specific to SPY. Let me do so now.

Analyzing the SPDR S&P 500 ETF Trust (SPY) over the past year reveals significant growth, with the ETF reaching an all-time high closing price of $607.81 on December 6, 2024.
YAHOO FINANCE

The 52-week range for SPY is as follows:

52-Week High: $609.07

52-Week Low: $469.87

This indicates a substantial increase from the 52-week low to the high, reflecting strong market performance during this period.
YAHOO FINANCE

In 2024, SPY achieved an annual total return of 24.89%, following a return of 26.19% in 2023.
YAHOO FINANCE

As of January 8, 2025, SPY closed at $589.49, showing a modest increase of 0.15% from the previous day.
YAHOO FINANCE

Several factors have contributed to SPY's performance over the past year:

Technology Sector Growth: Major technology companies have significantly influenced SPY's performance, with the top holdings in SPY being Apple Inc., Microsoft Corp., and Amazon.com Inc.
MARKETWATCH

Economic Indicators: Positive economic data, including GDP growth and employment figures, have bolstered investor confidence, contributing to market gains.

Monetary Policy: The Federal Reserve's monetary policy decisions, particularly regarding interest rates, have impacted market liquidity and investor sentiment.

As of now, pre-market data for SPY is not available.
NASDAQ

However, futures markets can provide some indication of market sentiment.

Dow Jones futures, along with S&P 500 and Nasdaq futures, dipped slightly overnight, suggesting a cautious market sentiment ahead of the New York open.
INVESTOPEDIA

SPY has exhibited strong performance over the past year, reaching new highs and delivering substantial returns.

While pre-market data is currently unavailable, futures markets suggest a cautious sentiment ahead of the New York open.

Investors should monitor economic indicators, corporate earnings reports, and geopolitical developments, as these factors will continue to influence SPY's performance in the near term.

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