SPTM dominated by bulls lifting the market higher throughout the day
SPDR Portfolio Total Stock Market (SPTM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SPTM ended the month 1.59% higher at 37.78 after gaining $0.52 (1.4%) today on high volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 37.26, the ETF confirmed its breakout through the previous session high after trading up to $0.69 above it intraday.
Daily Candlestick Chart (SPTM as at Jun 30, 2020):
Tuesday's trading range has been $0.77 (2.07%), that's slightly above the last trading month's daily average range of $0.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SPTM.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 37.93 (R1), SPDR Portfolio closed below it after spiking up to 37.95 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 16th, SPTM lost -0.44% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 38.45 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for SPDR Portfolio. Out of 262 times, SPTM closed higher 55.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.50% with an average market move of 0.61%.