$SPY in a Downtrend Channel: Bounce ≠ Reversal
$SPDR S&P 500 ETF Trust(SPY)$ — Short Term Perspective with MMTW % Of Stocks Above 20-MA
2 days of gains have been fully erased today, with MMTW returning to historically oversold levels—similar to where we started the week.
A 2–3 day rebound wouldn’t be surprising, even with SPY at a new YTD low, as price is back near downtrend channel support.
If you’re looking to position shorts on tight risk, they should have been initiated before the move—not after today’s close.
SPY - Update
Monday +1.02%
Tuesday +0.26%
The market remains within a downtrend channel even with any further potential +1% move into the end of a positive week.
There’s still no clear sign of a strong breadth thrust, even though strength in select tech names may create a sense of FOMO. When the environment gets tougher (evident in our recent trades outcome, the market’s lower-high structure, overall breadth deterioration) —it’s even more important to avoid chasing late entries.
$NEBIUS(NBIS)$ should be a good reminder how unnecessary stop loss can be avoided if u already missed the most optimal entry (march 11th/13th entry vs march 16th entry).
"Moves within this channel can easily reach +2% in upcoming week, making it tempting to turn optimistic if it happens over the course of 3-4 consecutive sessions (eg. Mon +0.4%, Tue +0.7%, Wed +0.5%, Thur +0.3%)."
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
-
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
-
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
