SPY

SPY remains in a Stage 2 corrective advance with clear higher highs and higher lows above rising EMAs. Medium-term structure is Bullish, supported by an active Higher Highs & Higher Lows pattern and the 50-day SMA acting as support. In the short term, price is pulling back into the 9/20 EMA zone and holding just above the 50-day SMA, presenting a favorable entry opportunity. Execution is recommended now on acceptance at the EMA confluence. Risks include rejection at the EMAs or a decisive break below the 50-day SMA undermining bullish momentum.

• ↑Institutional net buy imbalance of $619.3M on July 6 shows strong demand.
• ↑63% implied probability of closing higher underpins bullish sentiment.
• ↓SPY’s P/E of 23.48 marks premium valuation risk.