SPY Technical Analysis & Weekly Stock Market Update


Chart done on hourly timeframe. Bulls squeezed markets into new highs last week after earnings from Amazon and Meta sent the technology sector higher. Many feared that tech stocks would miss on earnings this quarter and force markets back down, however so far most companies have met analysts’ targets. Amazon, Meta, Netflix, and Microsoft have especially stood out as their results were far above expectations, but more importantly their guidance reflects a strong 2024. With markets already at a “extreme greed” reading, earnings acted as a catalyst and fueled stocks higher to seal off the week.   

Coming into this week our focus will mostly be on technical analysis. There aren’t many notable reports on the economic front, but Fed members are set to speak every day of the week ahead. We often see markets react in real time to Fed comments during their speeches so keep that in mind when analyzing markets.  

Technical analysis:

Markets are likely to continue their rally this week since traders and investors are no longer dreading the earnings uncertainty, but SPY must maintain key supports in order to do so. Option traders must be careful because if Friday's breakout fails then SPY's calls may be crushed through the week and puts can gain momentum. We saw buying volume spike again after nerves were alleviated by the earnings results, suggesting the buyers are ready to push again, SPY reached a high of 496.05 before pulling back, which makes that our main resistance in focus this week. Our target above that is 500.00.