• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock SPY Has a Clear Level to Beat
Stock

SPY Has a Clear Level to Beat

by January 21, 2023
by January 21, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The S&P 500 has been trending lower since the peak in January 2022, but this decline could be a long correction after a massive advance. The pattern taking shape and the retracement amount are typical for corrections. Today’s article to highlight this setup and show the key level to beat going forward.  

The price chart shows a massive advance into January 2022 and an extended decline the rest of the year. The long-term trend is down with a big falling wedge taking shape. Notice that this wedge retraced around half of the prior advance. The falling wedge is typical for a corrective pattern and 50% is the base case for a retracement. Charles Dow noted that corrections retrace one to two thirds of the prior advance with half being the base case. Think of its as two steps forward and one step backward.

There is a bullish setup on the price chart, but the trend is down until proven otherwise. In other words, I am bearish until I see evidence to the contrary. There are two items to watch. First, a move above the December high (410) would trigger a wedge breakout and a higher high. Second, watch for the Trend Composite to turn positive. This indicator aggregates signals from five trend-following indicators. It has been bearish (negative) since mid April.

We unveiled a mean-reversion trading strategy for ETFs this month at TrendInvestorPro. This is a rules-based trading strategy complete with quantified performance metrics to set expectations. This strategy complements the trend-momentum strategy that uses the Trend Composite for signals. Click here for immediate access.

The Trend Composite, Momentum Composite, ATR Trailing Stop and eight other indicators are part of the TrendInvestorPro Indicator Edge Plugin for StockCharts ACP. Click here to learn more and take your analysis process to the next level.

—————————————

You Might Also Like
  • Follow This Powerful Seasonal Playbook in Election Years
  • Where’s the Money Going? Watch Volume and Price Action
  • Don’t Miss the Move Into These NEW Areas!
  • ChartPacks: The Quick and Easy Way to UNLEASH THE POWER of Your StockCharts Account
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Kamala Harris reveals Biden’s 2023 priorities includes inflation, job growth: ‘Never been more optimistic’
next post
Kansas Republican Sen. Moran says ‘cyber-criminal’ stole nearly $700K from campaign

You may also like

These Old-School Stocks Have Joined The AI Rally!

November 23, 2024

Using Outsized Moves to Identify Trend Reversals – Checking in...

April 12, 2024

Sector Rotation Breakdown: Spotting Market Leaders Now

March 14, 2025

Small-caps Break Out and Lead – Now What?

July 19, 2024

A Foray into Currency Pairs

June 15, 2023

Getting Perspective and Dealing with Volatility

April 20, 2024

Is “Wonder Woman” Semiconductors Immortal?

May 13, 2023

How to Not Just Survive But PROSPER During Market Downturns

October 4, 2023

Is This a Market Bubble – or Investor MANIA?

June 26, 2024

California is Going to Drop a Liquidity Bomb on The...

July 21, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,633 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Why the MACD Crossover Signal is...

    October 16, 2024

    Bank Earnings Showdown: Emerging Trends You...

    July 13, 2023

    DP Trading Room: SPX Earnings Update

    April 14, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here