In the Looming Market Crash webinar I discussed my viewpoints about stocks over the next few months. I believe that SPY is trending towards all-time high around $477, and that the Presidential election is a key catalyst to help drive this bullish price action. However, SPY’s 5-month rally from March to July came to a screeching halt in August.
Key Price Levels for September
– I believe that SPY needs to defend these two key price levels in September to remain bullish for the rest of the year.
– The first price level is the yellow support line at $443.82, which would be an extremely bullish sign if SPY remains above this support level for the remainder of September.
– The second price level is the red support level, which was acting as resistance in May and flipped to support in June. This red support level also held as support in August and will be a key support level to defend moving forward for SPY to continue its uptrend (support and resistance are marked by green and red arrows).
Key Resistance Levels:
– There are also two key resistance levels on the chart if SPY starts trending up.
– The first is the green support line that held as support since the March 13 rally. This support line broke on August 15 and has flipped to resistance when SPY touched this green line on August 31. This green line will be a short-term resistance target moving forward.
– The more important price target for me is the $469-477 resistance zone (marked by a red flag), which coincides with SPY’s all-time high. I believe that this is the key price target that SPY is trending to over the next few months.
TradingView Chart:
