SPY: Bullish reaction or Dead Cat Bounce?

Hello traders and investors! Let’s see how SPY is doing today. Yesterday, we successfully identified a bottom level, and now it is reacting accordingly. What’s next?

In the 1h chart, it gapped up, and now it is trading above the 21 ema. This is a very good sign, and in theory, it will keep trending as long as we don’t see a reversal around. What could ruin the bullish bias? If it loses the $ 443.22 (green line). Then SPY could easily fill the gap at $ 440.

Now, let’s see the daily chart:


There’s still some upside potential, and here we see clearly why I said the index was close to its bottom yesterday: It just hit its 61.8% retracement. Today’s reaction confirmed a good reaction, therefore, I see it at its 21 ema next. The link to my previous analysis is on the link below, as always.

If it'll do a Dead Cat Bounce or not, we'll know in a few days, especially if it actually retests its next resistance. For now, we must wait for more confirmation and see how it'll react near its next resistance. Remember, technical analyis is reactive, not predictive. For now, we can only guess.

Although pullbacks are plausible, SPY must not lose its green line in the 1h chart, otherwise it could drop to the 61.8% retracement again. I’ll keep you guys updated on SPY every day, so, remember to follow me to keep in touch with my daily analyses.