10.11.2022 Market Update
Wow what a crazy day! What we expected to be a boring/choppy day on the market turned out to be one filled with many twists and turns. This includes SPY making a new yearly low in the first half hour of trading only to shoot up to almost 1% before making a lower yearly low (355.75) in the last hour of the day, breaking through out short term downside target of 357.04. All of this crazy behavior can be chalked up to a vicious bear market rally aka shorts violently covering their positions.
SPY is clearly into our downward channel above and is trending down on the daily and monthly time frames. It is currently in balance on the weekly timeframe, but if we close the week at or below these levels, that will be down as well.
All in all things remain very bearish and there is little reason to be a bull in the short term. With all of the news dropping the next few days (Fed Minutes, PPI, CPI ,etc), we will be sitting on our hands and waiting for more clues from the market before considering any positions. That said, here are some levels we are watching:
Short Term SPY Targets.
- Downside: 354.02 - 2020 October High
- Upside: 360.02 - October 10th Close
Feel free to leave questions in the comments below or on twitter.
Happy Trading!
Photo by Chris Andrawes on Unsplash