In this technical article, we’re going to take a quick look at the Elliott Wave charts of the SPY ETF , published in the members area of the website. As our members know, SPY remains overall bullish. However, currently it’s correcting the cycle from the August 504.84 low. In this article, we will explain the forecast and the best way to trade SPY.
SPY one-hour update 12.23.2024
The ETF is bouncing against the 609.07 high, and currently, the recovery appears incomplete. We’ve seen a sharp rally from the lows, which looks impulsive. The current view suggests the correction can be unfolding as an Elliott Wave Zig Zag pattern while we are still in wave B.
The short-term view suggests we could see another leg down in red wave B before red wave C takes place higher. Anyway, due to the 5 waves from the low, we believe another leg up in red wave C should be seen to complete the blue wave (X) correction against the 609.07 high.
As our members know, we favor the long side in indices and ETFs and do not recommend selling SPY during any proposed pullbacks. If we see the proposed leg down, we will use it as a new buying opportunity.
SPY one-hour update 01.05.2024
SPY has traded according to our forecast. We got 3 waves pull back in B red, and then another leg up C red. ETF completed the proposed leg up, forming a Zig Zag pattern against the 609.07 high. We consider the (X) recovery complete at 602.55 level. As long as the price remains below this high, we expect further weakness in the (Y) leg. A break of the (W) blue low is needed to confirm the proposed scenario. We do not recommend selling against the main bullish trend and will view the (Y) leg as a new buying opportunity if the next extreme zone is reached.
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