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

As we navigate a potential multiple timeframe breakout situation, the market indexes are presenting an intriguing technical landscape. Despite significant news events including the NVIDIA report, GDP data, and PCE figures, the market has maintained a consolidation pattern. We’ve kept our SPY ranking at +30 (slightly Bullish) this week, reflecting the current holding pattern as we approach Labor Market week, where we anticipate increased volatility.

The S&P 500 (SPY) has entered a consolidation phase, forming a momentum-based high base pattern after the recent V-shaped recovery. This pattern suggests that the market is catching its breath and preparing for a potential breakout to new all-time highs. With resistance being tested at the current highs, the focus is now on volume patterns and the strength of any breakout move.

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The market just took us on quite a ride. After a tumultuous start to the week, we’re seeing signs of stabilization. The big story? All major indexes are moving in lockstep, a rare sight that speaks volumes about the market’s current mindset.