SPY/QQQ TA

SPY:

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1. Daily Chart Analysis

• KDJ (Stochastic Oscillator):

  • %K: 56.31, %D: 70.78, %J: 27.37
  • The %J line has dipped sharply below the %K and %D lines, signaling a potential bearish correction. However, it is still in the mid-range and hasn’t reached oversold levels (<20), suggesting room for further downside or consolidation.

• PPO (Percentage Price Oscillator):

  • The PPO line has crossed below the Signal line, showing bearish momentum building in the short term. The histogram turning negative supports this bearish outlook.

• Volume:

  • A significant increase in recent volume suggests active selling pressure at higher levels ($590-$600).

• Summary:

  • Momentum is turning bearish on the daily chart, with a potential retest of support around $570. Bulls would need to regain $590 to resume upward momentum.

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2. Weekly Chart Analysis

• KDJ:

  • %K: 74.62, %D: 81.80, %J: 60.26
  • The KDJ indicators are in the overbought zone but starting to decline, suggesting the early stages of a potential pullback or consolidation.

• PPO:

  • The PPO line is still above the Signal line, but the histogram shows signs of weakening bullish momentum.
  • If the lines converge further, it could signal a deeper pullback on the weekly timeframe.

• Volume:

  • Volume remains elevated, particularly on red candles, indicating profit-taking at higher levels.

• Summary:

  • The weekly trend is still bullish but shows signs of exhaustion. A correction to the $560-$570 range would align with natural profit-taking and provide potential buying opportunities.

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3. Monthly Chart Analysis

• KDJ:

  • %K: 90.32, %D: 91.81, %J: 87.33
  • The KDJ remains in the overbought territory (>80) but has started to flatten, suggesting waning bullish momentum. A divergence could form if the %J line continues to decline.

• PPO:

  • The PPO line is well above the Signal line, confirming a strong long-term uptrend. However, the histogram is flattening, hinting at a potential loss of momentum.

• Volume:

  • High monthly volume supports the bullish case, but declining momentum at $600 could lead to a pause or consolidation phase.

• Summary:

  • The monthly chart remains bullish, with the $600 level acting as significant psychological resistance. A deeper correction may test $550-$560 as support.

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Key Levels to Watch Across Timeframes

1. Support Levels:

   • Daily: $570 (short-term), $550 (strong support).
   • Weekly: $560-$570.
   • Monthly: $550.

2. Resistance Levels:

   • Daily: $590, $600 (key breakout level).
   • Weekly: $600.
   • Monthly: $600-$620 (long-term target).

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Conclusion and Strategy

• Short-Term (Daily):

  • Momentum is bearish. A pullback to $570 or a potential break below could offer better long-entry opportunities.

• Medium-Term (Weekly):

  • The uptrend is intact but showing early signs of weakness. A dip to $560-$570 would be healthy within the larger uptrend.

• Long-Term (Monthly):

  • SPY remains in a bullish structure. Corrections to $550-$560 could serve as a long-term accumulation opportunity.
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QQQ:

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1. Daily Chart Analysis

• KDJ (Stochastic Oscillator):

  • %K: 53.53, %D: 68.81, %J: 22.97
  • The %J line has dipped below the %K and %D lines, signaling a short-term bearish divergence. The oscillator is in the middle zone (neither overbought nor oversold), suggesting room for further downside or sideways consolidation.

• PPO (Percentage Price Oscillator):

  • The PPO line has crossed below the Signal line, and the histogram is negative, indicating bearish momentum is building.
  • This suggests that price action is currently losing bullish steam.

• Volume:

  • Relatively average daily volume with slight spikes during recent downward moves indicates some profit-taking at higher levels.

• Summary:

  • Short-term momentum is weakening. The $490–$500 range serves as support, while $510 acts as immediate resistance. Expect further consolidation or a potential dip before any significant upward move.

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2. Weekly Chart Analysis

• KDJ:

  • %K: 72.27, %D: 79.36, %J: 58.08
  • The KDJ lines remain in the overbought zone (>70), though the %J line has started declining, signaling potential exhaustion of bullish momentum. This could indicate the early stages of a pullback or a sideways movement.

• PPO:

  • The PPO line is still above the Signal line, confirming a bullish trend on the weekly timeframe. However, the histogram is showing reduced bullish momentum, indicating that the uptrend is slowing down.

• Volume:

  • Weekly volume remains steady but does not show significant spikes, suggesting neither strong buying nor aggressive selling at current levels.

• Summary:

  • The weekly chart suggests a bullish trend with signs of slowing momentum. Key support lies in the $480–$490 zone, and resistance is around $510–$520. A pullback to support would still be within the context of the larger uptrend.

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3. Monthly Chart Analysis

• KDJ:

  • %K: 83.16, %D: 84.21, %J: 81.04
  • All three lines are in the overbought zone (>80), indicating strong bullish momentum. However, they are beginning to flatten, which could indicate a potential slowdown in the long-term rally.

• PPO:

  • The PPO line is significantly above the Signal line, confirming a strong bullish trend. The histogram remains positive but is showing signs of flattening, suggesting the rally could face resistance near $510–$520.

• Volume:

  • Monthly volume remains robust, supporting the ongoing uptrend.

• Summary:

  • The long-term trend remains bullish, but overbought conditions and flattening indicators hint at a possible pause or correction. Support lies around $470–$480, while $510–$520 remains the critical resistance zone.

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Key Levels to Watch Across Timeframes

1. Support Levels:

   • Daily: $490 (short-term), $480 (strong support).
   • Weekly: $480–$490.
   • Monthly: $470–$480.

2. Resistance Levels:

   • Daily: $510.
   • Weekly: $510–$520.
   • Monthly: $520.

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Conclusion and Strategy

• Short-Term (Daily):

  • Momentum is turning bearish. Watch for a retest of $490 or even $480, which could provide an attractive entry point for a bounce.

• Medium-Term (Weekly):

  • The uptrend is intact but losing steam. Consolidation or a pullback to $480–$490 would be a healthy development within the larger trend.

• Long-Term (Monthly):

  • QQQ remains in a strong bullish structure. A correction to $470–$480 would provide an excellent long-term buying opportunity, while a breakout above $510–$520 could lead to further gains.