What follows is a high level analysis of the
SPY
using the RD Trade System.
Overview
Since around March 29th 2023 the
SPY
has been momentum and bias long the last RA check was on April 23rd and May 23rd both of those bias checks held up it's also maintained momentum throughout this whole time.
There is no reason to short the market at any point in time and buying pullbacks is what the trade system suggests.
The one thing that would change this would be a close below the 410 handle. A substantial close below this price level and this price level being tested would signify a change in market sentiment.
Outside of that trading this is straightforward.
Upside Zones
On the chart we've outlined the high probability by zones 1through 3.
To the upside we have target 1and target 2.
Target 1 is rather wide that's because our upside indicators and rules within the system give us multiple areas where it could fail.
If and when price gets to this zone this would be a fade trade so if you are not experienced with fade trading, it's not a trade I would recommend.
We would be fading this market in this zone. A close above this zone virtually guarantees it would take out the all-time high with a target zone between 499 and 510.
Target two is also another zone where we expect a reaction.
System Trade Plan
How does our system tell us to trade this?
Very simple. We wait for the price action on Monday and either enter what we call a participation trade or we simply wait for a pullbacks to our buy zones.
If and when price hits the buy zones we then wait for simple confirmation using what we call the four chart setup.
A close above 450 would be a big deal and would signify especially if it's tested multiple times that the all-time high will be taken out.
The bottom line as long as momentum and bias remains long we will be buyers in this market.
I say this often-- don't argue with the chart, it's clear where bias and momentum lies within the SPY at this moment.
If you have any questions or feedback please leave a comment down below. It literally took me 90 seconds to put together this analysis it actually took longer to dictate this and share this idea than it would for me to devise a trade plan to trade this.
SPY
using the RD Trade System. Overview
Since around March 29th 2023 the
SPY
has been momentum and bias long the last RA check was on April 23rd and May 23rd both of those bias checks held up it's also maintained momentum throughout this whole time. There is no reason to short the market at any point in time and buying pullbacks is what the trade system suggests.
The one thing that would change this would be a close below the 410 handle. A substantial close below this price level and this price level being tested would signify a change in market sentiment.
Outside of that trading this is straightforward.
Upside Zones
On the chart we've outlined the high probability by zones 1through 3.
To the upside we have target 1and target 2.
Target 1 is rather wide that's because our upside indicators and rules within the system give us multiple areas where it could fail.
If and when price gets to this zone this would be a fade trade so if you are not experienced with fade trading, it's not a trade I would recommend.
We would be fading this market in this zone. A close above this zone virtually guarantees it would take out the all-time high with a target zone between 499 and 510.
Target two is also another zone where we expect a reaction.
System Trade Plan
How does our system tell us to trade this?
Very simple. We wait for the price action on Monday and either enter what we call a participation trade or we simply wait for a pullbacks to our buy zones.
If and when price hits the buy zones we then wait for simple confirmation using what we call the four chart setup.
A close above 450 would be a big deal and would signify especially if it's tested multiple times that the all-time high will be taken out.
The bottom line as long as momentum and bias remains long we will be buyers in this market.
I say this often-- don't argue with the chart, it's clear where bias and momentum lies within the SPY at this moment.
If you have any questions or feedback please leave a comment down below. It literally took me 90 seconds to put together this analysis it actually took longer to dictate this and share this idea than it would for me to devise a trade plan to trade this.
Trade active:
Looks like tomorrow we
SPY
is going to start to enter target 1. watching how this unfolds is important on the 60m and 4-chart setup. You BigTick chart is your control for structure and outlining key 60m levels is important.
SPY
is going to start to enter target 1. watching how this unfolds is important on the 60m and 4-chart setup. You BigTick chart is your control for structure and outlining key 60m levels is important.
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