This week, we maintained the SPY ranking at +20. As we continue to observe consolidation in the high base formation, we saw increased volatility throughout the week. With significant economic data and earnings reports ahead, we expect to see more decisive price movement, making this technical structure particularly important to understand.

This week, we maintained the SPY ranking at +20. We upgraded it last week, and now we’re in a maintenance mode. This decision stems from observing good secondary development within the trend that was established by last week’s breakout.

This week, we upgraded the SPY ranking from +25 to +20, driven by three key factors. First, the technical confirmation of the breakout above 575 on Wednesday’s daily chart, followed by strong momentum on Friday, pushed SPY to close at an all-time high on the weekly chart. Second, the positive catalyst provided by the kickstart to bank earnings added fuel to the market’s move. Lastly, technical indicators, including RSI and MACD, show there’s still room for this market to run

Looking at the S&P 500, represented by the SPY ETF, we’re maintaining our ranking at the +25-yard marker. Last week, we described the market as playing a bit of defense on top of the breakout channel, forming a high base with the potential for a small pullback. This week, the price action can be characterized as simple consolidation, with the market holding within a tight range.

We are maintaining our SPY ranking at +25, following last week’s upgrade from +30 on the breakout. The market has lacked momentum following the breakout, consolidating above the breakout channel. This defensive action, while not negative, hasn’t provided the spark needed for a further upgrade in our slightly bullish outlook.

We are upgrading our SPY ranking by 5 points to +25, reflecting the significant technical developments following the central bank’s decision to lower interest rates by 0.50%. This oversized cut, coupled with signals of a more aggressive cutting cycle than previously assumed, has had a substantial impact on market dynamics. Governor Waller’s comments on Friday suggesting the oversized cut was due to improvement in inflation is a positive sign for the market, indicating that the Fed is cutting rates to alleviate the restrictive territory of the overnight rate rather than due to economic concerns.