The SPY appears to be wrapping up its recent sell cycle, signaling potential recovery ahead. While the momentum is slightly negative, the overall trend remains positive, supported by an oversold RSI indicating a rebound may be on the horizon. As a result, my outlook for the coming week is bullish, with the potential for several green days in the market.
However, it’s important to remain cautious. Recent market activity has shown a disconnect between the SPY and other major indices, with the SPY closing green on days when others were red. This divergence could introduce volatility, so while the bullish sentiment is promising, staying adaptive and monitoring market conditions is key.
Traders should watch for confirmation of the recovery trend and manage risk appropriately as we head into the final stretch of the year.
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