SPY Technical Trade Call Based on Late-Stage Rally Signals

2 months ago

Josh

"Obviously, we've had a number of stacked amazing months, but currently this red candle engulfs the previous monthly candle, which is very bearish. And if this candle were to close red the way that it is opened above and currently could close below, this is the November monthly candle, if it closed below the October monthly candle, that would be very bearish and it would confirm that we are moving down to 640, at least as far as I can read the charts. However, if we close beneath 640 and this candle goes from an engulfing candle to a hammer candle or a T, then it means that 700 to 720 is still on the table; otherwise, if that 640 support fails to attract buyers, we have to assume 603 at the moment."

The speaker provides a technical analysis for SPY, indicating that the current red engulfing candle is a bearish signal. He outlines that a close below 640 would confirm a downside move toward 603, while a reversal could set up a rally toward 700-720. This analysis points to an actionable trade opportunity based on short-term chart signals amid a late-stage rally.

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