🌟🌟🌟Confirmed Breakout or Failed Rally? Based on recent price action and technical analysis on
$SPDR S&P 500 ETF Trust(SPY)$ the current situation suggests a failed rally that qualifies as a Bull trap, rather than a confirmed breakout.
This is due to :
Failed Momentum: Even though price action recently pushed above resistance levels, this upside move was not confirmed by supporting momentum indicators like RSI or MACD which signals a lack of conviction behind the move.
Low Volume on Breakout : Failed breakouts often occur on weak volume and a significant spike in volume on the reversal suggests a fakeout which can trap traders.
In summary the recent price action of SPY lacks the necessary confirmation such as volume and momentum required for a sustained genuine breakout. Instead it looks like a classic bull trap designed to lure in buyers before a potential reversal or correction.
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