A Final Countdown For SPY Towards 420?

ZEROHERO
2023-05-18
$SPDR S&P 500 ETF Trust(SPY)$ 

19% gain from taking puts and calls. The stalemate caused by the debt ceiling could be resolved within days as declared by President Joe Biden before he left for G7 meeting. The market spiked after the positive news.

⚠️ Looking at calls above 415.9 and puts under 414 on Thursday. Take note of strongest resistance above at 420.76, 426.56 and support below at 414, 408.

Following the decade old script

The SPDR S&P 500 (NYSE:SPY) was surging over 1% higher on Wednesday after President Biden said lawmakers will reach an agreement before the U.S. defaults on its debt, which could occur as soon as June 1. 

The news caused the SPY to break up from a downward channel pattern as it reached a stubborn consolidation over the last few trading sessions.

The break up from the pattern caused the SPY to confirm a new uptrend is intact, with the most recent higher low formed on Tuesday at $410.24 and the most recent confirmed higher high printed at the $414.54 mark on May 10. On Wedndesday, the SPY was working to print a bullish Marubozu candlestick, which could indicate higher prices will come again on Thursday.

Bullish momentum of SPY holds above key level

The second most likely scenario is that the market ETF forms an inside bar to consolidate Wednesday’s bullish price action. If that happens, it will lean bullish for continuation in the direction of the current trend.

Bearish traders may want to wait for the SPY to eventually form a bearish reversal candlestick, such as a doji or shooting star candlestick, which could indicate the local top has occurred and a retracement is on the horizon. If the SPY rises to the $418.31 mark, it could find resistance there like it did on Feb. 2 and May 1.

Cautious optimism is likely to return to the market on Wednesday after the sell-off seen on Tuesday amid fears concerning a slowdown in consumer spending. Traders may look for cues from earnings reports from more retailers, the housing starts data and headlines on the debt ceiling stalemate.

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@CaptainTiger @MillionaireTiger @TigerStars @Daily_Discussion 


Debt Ceiling Crisis Averted
President Joe Biden signed legislation averting a US debt default.
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Comments

  • CaesarHicks
    2023-05-18
    CaesarHicks

    The $标普500ETF(SPY)$ has been on a downward trend in recent months.

    • ZEROHERO
      Rate hike pause will propel SPY to go higher
  • MorganHope
    2023-05-18
    MorganHope

    It is difficult to say with certainty whether the S&P 500 will reach 420 in the near future.

  • Guy
    2023-05-18
    Guy

    I think debt ceiling will not be the risk to make the market down.

    • ZEROHERO
      Certainly will cause it to go higher for the time being
  • highhand
    2023-05-18
    highhand
    4200 spy gonna be broken sooner than later...
  • Aqa
    2023-05-18
    Aqa
    Great article!👍🏻 Liked, shared and comment. Support my friend.
    • ZEROHERO
      Thanks. Hope you bank with my calls
  • YueShan
    2023-05-18
    YueShan
    Good ⭐⭐⭐
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