$SPY - Encounters Resistance at Moving Averages
$SPDR S&P 500 ETF Trust(SPY)$ - The premarket session found support at the current volume shelf, leading to a bounce at the open. While the resulting candle shows volume validation, it encountered resistance at both the 5DMA (grey line), and the 50DMA (purple line), failing to break above them.
If the market continues to aggressively buy any pullbacks, a short-term bottom may be in place, especially given the current status of the Williams %R and the price action at the lower Bollinger Band.
However, there is underlying weakness indicated by the lack of buying conviction at the close, suggesting a potential downward move. This move, however, could be part of a broader bounce, as illustrated by the black arrows pointing to bearish candles.
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