The SPDR S&P 500 ETF Trust (SPY had a disastrous day on Tuesday, falling more than 4%. It was the S&P 500’s worst session since June 2020.
For now, it’s holding the $390 area and is above last week’s low at $388.42.
But the SPY sports a two-day low of $391.12, which is the low from yesterday’s somewhat pitiful bounce following the beating the index took on Tuesday.
I say these things not to strike fear but simply to remind traders that stocks are in a bear market and are teetering on support.
Is it possible that support holds and we rotate higher? Yes, it’s possible — but not likely.
If the SPY can clear $396.20 and close above it, we could see a push back to $400 or higher (for the S&P, that’s roughly 4,000).
As for what happens on a break below $388.42 — last week’s low — that opens up the gap-fill level down near $379. Just below that area and the $372.50 to $375 zone becomes a possibility.
Where Could Stocks Fall To? ຕາຕະລາງປະຈໍາອາທິດຂອງ SPY ETF.
ມາລະຍາດມາຈາກຕາຕະລາງຂອງ TrendSpider.com
Zooming out a bit with the weekly chart, we have an area that I have had circled on my charts for months. This does ບໍ່ mean we will necessarily get there. And if we do get there, it does ບໍ່ necessarily mean it will be the low or that it will hold as support.
ແນວຄວາມຄິດທີ່ດີທີ່ສຸດສໍາລັບທ່ານທີ່ຈະສ້າງຄວາມຮັ່ງມີ ສະໂມສອນການລົງທຶນສະເພາະສະມາຊິກທີ່ຊ່ວຍໃຫ້ທ່ານຂະຫຍາຍຫຼັກຊັບຂອງທ່ານດ້ວຍການແຈ້ງເຕືອນການຄ້າໃນເວລາຈິງ, ການວິເຄາະເຫດການຕະຫຼາດທີ່ສໍາຄັນ, ແລະໂອກາດທີ່ສໍາຄັນ.
ການແຈ້ງເຕືອນການຄ້າໃນເວລາຈິງ 24/7 ການເຂົ້າເຖິງຫຼັກຊັບ Portfolio ເປົ້າຫມາຍລາຄາ ຮຽນຮູ້ເພີ່ມເຕີມ
As traders, we must keep an open mind and adapt to the market.
If the $390 area gives way, the $350 zone really starts to draw in one’s attention. In that zone, we find:
The 50-month and 200-week moving averages The 50% retracement from the all-time high down to the Covid low The monthly VWAP measure The 2020 breakout area Again, there’s no guarantee that we even retest the current 2022 low near $362 or that if we do, we test this area of interest I just mentioned. But it should be a potential outcome that traders keep note of.
For what it’s worth, a test of the $350 area would get us an 11% pullback from yesterday’s close.
If we’re talking about a 20% fall from current levels, that puts us around $315 on the SPY.
Interestingly enough, that would put us near the 61.8% retracement, but about 34% off the all-time high.