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.

We are maintaining our +30 ranking for the SPY, despite the bullish move off support. The market confirmed 540 as key support with a strong rebound, but as the SPY nears the all-time high of 565, we remain cautious. This multi-timeframe resistance serves as a critical barrier, and we’d prefer to see consolidation before any potential breakout, which could be triggered by the upcoming Fed announcement. A break above 565 would confirm a bullish breakout and complete the cup-and-handle formation on both the daily and weekly charts, sparking further momentum.

Last week, we maintained our +30 ranking for SPY, reflecting cautious optimism amid expected volatility due to labor market data. The market saw aggressive selling in technology and energy within cyclicals, while defensive areas remained stable. Despite the selloff, we refrained from downgrading the market, as the technical structure still supports the view of a bullish retracement rather than a full breakdown