SPY Technical Analysis and Market Update for June 2023


Chart done on hourly timeframe. We have a shortened trading week ahead as markets will be closed in recognition of Juneteenth on Monday. Historically we’ve seen markets trade with lower volume after a three day weekend so the week may start off with a consolidation session as everyone gets back into rhythm. Markets are awaiting May’s housing data and the PMI reading this week, but the main event is Powell’s semiannual monetary policy testimony before congress. Powell’s testimonies and addresses usually create increased volatility in the market, we’ll be watching the VIX index to monitor volatility activity. Increased volatility can inflate option pricing, which is something to note for short term option traders. 

Technical analysis:

Many names and indexes are starting to move into overbought territory, but buying momentum continues to grow as market greed takes over. Many great traders and investors have cautioned against betting against markets when they’re in “greed” mode so if you plan on shorting this market, understand the risks that are accompanied with it. Day traders and swing traders must adapt continuously and not allow their own personal bias of “what should happen” to impact their trading execution. This is why we form levels on all our charts to both the bullish and bearish side. SPY is considered strongly bullish above 438.35, but can pull back to 433.55 and still be healthy. Below that point it has a critical support at 432.00, a break below has a downside price target of 427.50-428.00. Bulls are looking for a breakout above 443.90 for a rally continuation to a PT of 448.00-450.00.

SPY Technical Analysis. TSLA, NVDA, AMD, AAPL GOOGL Price Targets.