• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock SPY Reverses Long-term Uptrend with Outsized Move – Now What?
Stock

SPY Reverses Long-term Uptrend with Outsized Move – Now What?

by March 14, 2025
by March 14, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The weight of the evidence shifted to the bears over the last few weeks. First, the major index ETFs reversed their long-term uptrends with Bollinger Band signals, our breadth models turned net negative and yield spreads widened. This report will focus on the breakdown in the S&P 500 SPDR (SPY), which represents the single most important benchmark for US stocks.

The SPY chart below shows weekly candlesticks and the 40-week SMA, equivalent to the 200-day SMA. On the top right, we can see a break below support from the January low and a break below the 40-week SMA with an outsized decline. An outsized decline is an exceptionally sharp, deep decline that can derail an uptrend. As of Thursday’s close, SPY had fallen over 9% in 15 trading days, the largest 15 day decline since September 2022. This exceptionally strong selling pressure pushed prices below the demand line (support) and a key long-term moving average. Note that a similar break occurred in January 2022, which we covered in a report and video on Friday.

Large-caps are also starting to lag the broader market. The middle window shows the SPY/RSP ratio breaking below its 40-week SMA for the first time since early March 2023. After outperforming for two years, large-caps (SPY) are underperforming the average stock in the S&P 500 (RSP). SPY also started underperforming RSP in January 2022, which is when the 2022 bear market started. 

So now what? SPY became short-term oversold this week and ripe for a bounce. The broken support zone and underside of the 40-week SMA turn into the first resistance levels to watch (blue shading). We are now trading under a bear market regime so I would expect any bounce to fail in the 580 area.

Our reports and videos covered the following this week:

Six of the nine breadth-model indicators triggered bearish signals.Yield spreads widened as stress increased in the credit markets. Six major index ETFs triggered bearish Bollinger Band breaks. Precious and industrial metals ETFs extended on breakouts. Applying lessons from the 2022 bear market to the current situation.

Click here to take a trial and gain immediate access!

//////////////////////////////////////////////////////////////

You Might Also Like
  • The Stock Market is Bracing for Earnings IMPACT!
  • Setups That I Like Right Now
  • Down-and-Out Stocks Entering New Uptrends – These 8 Traits Will Help You Pick a Winner
  • Watch for These ADX Combinations
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Tariff Turmoil: 3 Stocks You Need To Know Right Now!
next post
Egg prices are falling, with a dozen now less than $5

You may also like

COMMUNICATIONS SECTOR JOINS TECHNOLOGY SECTOR TO HELP BUOY EQUITY MARKETS

July 1, 2024

Week Ahead: NIFTY Likely To Continue To Consolidate; Relative Outperformance...

February 24, 2024

Trifecta of Trouble

April 5, 2024

Confirming the 1-2-3 Reversal

March 24, 2023

Small-caps Break Out and Lead – Now What?

July 19, 2024

The Halftime Show: The One Indicator That Gave Me an...

July 17, 2023

Stock Market Weekly Wrap-Up: The Charts You Need to Have...

September 30, 2023

Apple hits Support-Reversal Zone – What is it and Why...

January 6, 2024

The Halftime Show: TSLA Review — Anatomy of a Trade...

August 22, 2023

2023 Q4 Earnings Analysis and Projections Through 2024 Q4

April 11, 2024

COMMUNICATIONS SECTOR JOINS TECHNOLOGY SECTOR TO HELP BUOY EQUITY MARKETS

July 1, 2024

Week Ahead: NIFTY Likely To Continue To Consolidate; Relative Outperformance...

February 24, 2024

Trifecta of Trouble

April 5, 2024

Confirming the 1-2-3 Reversal

March 24, 2023

Small-caps Break Out and Lead – Now What?

July 19, 2024

The Halftime Show: The One Indicator That Gave Me an...

July 17, 2023

Stock Market Weekly Wrap-Up: The Charts You Need to Have...

September 30, 2023

Apple hits Support-Reversal Zone – What is it and Why...

January 6, 2024

The Halftime Show: TSLA Review — Anatomy of a Trade...

August 22, 2023

2023 Q4 Earnings Analysis and Projections Through 2024 Q4

April 11, 2024

    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

    • Dick’s Sporting Goods to buy struggling Foot Locker for $2.4 billion

      May 15, 2025
    • YouTube will stream NFL Week 1 game in Brazil for free

      May 15, 2025
    • 5 new Uber features you should know — including a way to avoid surge pricing

      May 15, 2025
    • SMCI Stock Rebounds: Why Its SCTR Score is Screaming for Attention

      May 14, 2025
    • American Eagle shares plunge 17% after it withdraws guidance, writes off $75 million in inventory

      May 14, 2025

    Popular Posts

    • 1

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

      June 27, 2024 2,644 views
    • 2

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

      August 9, 2024 2,345 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,326 views
    • 4

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

      July 10, 2024 2,305 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,190 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,079)
    • Investing (538)
    • Stock (2,547)

    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

    • Dick’s Sporting Goods to buy struggling Foot Locker for $2.4...

      May 15, 2025
    • YouTube will stream NFL Week 1 game in Brazil for...

      May 15, 2025
    • 5 new Uber features you should know — including a...

      May 15, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,079)
    • Investing (538)
    • Stock (2,547)

    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

    Granny Retail a Big Barometer: Video...

    June 23, 2023

    The Market is Moving Higher, BUT...

    January 30, 2024

    Stocks Soar, Energy Prices Spike: Are...

    October 4, 2024
    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