Volatility Contraction Sets Up SPY Move Near $690.31
NeutralSPY (SPY) traded flat at $690.31 on December 29.
Technical indicators paint a bullish picture:
Moving Averages
Price trades above the 9-day EMA ($684.91) with a bullish stack. The 21-day EMA at $682.03 provides support.
Momentum
RSI at 66.1 is in neutral territory but trending higher. MACD is bullish (3.16 vs signal 2.51).
Volatility
Stock has been in a TTM Squeeze for 5 days, indicating compressed volatility and potential for a significant move.
While the trend remains bullish, elevated RSI warrants caution for new entries at current levels.