Chart of the day

Where do we stand fundamentally?

SPY is an ETF that is tracking the SPX Index and is rising in a bullish uptrend like the naked Index. What is fundamentally valid for SPX is valid for SPY as well. US data is strong and I am expecting a bullish continuation. You can try a hybrid combination of Index short or ETF short and other long or vice versa. According to your risk potential.

SPY is testing the strong upside resistance of 540. A bounce off this support is required for a bullish extension in the fifth wave to a next target of 570. Support for this new leg higher is 540.

An invalidation level of a fifth wave extension higher is 520. We need to see a confirmed break higher above 550 to an extension into 570.

_{Look for a long trade entry with a stop loss below 530.}