SPY closes higher for the 3rd day in a row
SPDR S&P 500 ETF (SPY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SPY finished Thursday at 261.20 gaining $14.41 (5.84%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 256.35, the ETF confirmed its breakout through the prior session high after trading up to $6.45 above it intraday.
Daily Candlestick Chart (SPY as at Mar 26, 2020):
Thursday's trading range has been $13.75 (5.51%), that's slightly below the last trading month's daily average range of $14.55. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SPY.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, SPY gained 1.50% on the following trading day.
Prices are trading close to the key technical resistance level at 273.45 (R1).
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 271.48 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for SPY. Out of 808 times, SPY closed higher 53.47% 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 63.86% with an average market move of 0.30%.