SPY pulled back Friday August 4th 2023 and broke down the daily 20 SMA, per the longer period SMAs SPY is still in an uptrend.
Reviewing the various sectors since March where Dec 2022 lows were tested it should be observed that consumer discretionary and technology sectors are at highs and per RSI are potentially headed towards oversold but appear to have some room to go still.
XLY had nearly $4 gap up Friday, will be watching this coming into next week to see if price maintains bullish trajectory with RSI bouncing the 50.
If SPY loses the 50 SMA then potentially the market is headed into reversal where it'll test other 2022 yearly candle based levels, such as $429.
Many other times SPY has broken the 20 SMA this year only to move higher shortly there-after so don't believe all the bear talk on the internet right now, trade what you see - not what you hear.
One additional sector to watch is utilities (XLU), that market appears to be ready for a rise per RSI and if SPY continues lower this may be the defensive position to take - seasonality favors XLU in August and October with historical positive changes between 60-75%.
Reviewing the various sectors since March where Dec 2022 lows were tested it should be observed that consumer discretionary and technology sectors are at highs and per RSI are potentially headed towards oversold but appear to have some room to go still.
XLY had nearly $4 gap up Friday, will be watching this coming into next week to see if price maintains bullish trajectory with RSI bouncing the 50.
If SPY loses the 50 SMA then potentially the market is headed into reversal where it'll test other 2022 yearly candle based levels, such as $429.
Many other times SPY has broken the 20 SMA this year only to move higher shortly there-after so don't believe all the bear talk on the internet right now, trade what you see - not what you hear.
One additional sector to watch is utilities (XLU), that market appears to be ready for a rise per RSI and if SPY continues lower this may be the defensive position to take - seasonality favors XLU in August and October with historical positive changes between 60-75%.
@tradeseekers (YouTube, Twitter)