Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Stocks

SPY Reverses Long-term Uptrend with Outsized Move – Now What?

by admin March 15, 2025
March 15, 2025
SPY Reverses Long-term Uptrend with Outsized Move – Now What?

The weight of the evidence shifted to the bears over the last few weeks. First, the major index ETFs reversed their long-term uptrends with Bollinger Band signals, our breadth models turned net negative and yield spreads widened. This report will focus on the breakdown in the S&P 500 SPDR (SPY), which represents the single most important benchmark for US stocks.

The SPY chart below shows weekly candlesticks and the 40-week SMA, equivalent to the 200-day SMA. On the top right, we can see a break below support from the January low and a break below the 40-week SMA with an outsized decline. An outsized decline is an exceptionally sharp, deep decline that can derail an uptrend. As of Thursday’s close, SPY had fallen over 9% in 15 trading days, the largest 15 day decline since September 2022. This exceptionally strong selling pressure pushed prices below the demand line (support) and a key long-term moving average. Note that a similar break occurred in January 2022, which we covered in a report and video on Friday.

Large-caps are also starting to lag the broader market. The middle window shows the SPY/RSP ratio breaking below its 40-week SMA for the first time since early March 2023. After outperforming for two years, large-caps (SPY) are underperforming the average stock in the S&P 500 (RSP). SPY also started underperforming RSP in January 2022, which is when the 2022 bear market started. 

So now what? SPY became short-term oversold this week and ripe for a bounce. The broken support zone and underside of the 40-week SMA turn into the first resistance levels to watch (blue shading). We are now trading under a bear market regime so I would expect any bounce to fail in the 580 area.

Our reports and videos covered the following this week:

  • Six of the nine breadth-model indicators triggered bearish signals.
  • Yield spreads widened as stress increased in the credit markets.
  • Six major index ETFs triggered bearish Bollinger Band breaks.
  • Precious and industrial metals ETFs extended on breakouts.
  • Applying lessons from the 2022 bear market to the current situation.

Click here to take a trial and gain immediate access!

//////////////////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
Why the Market is Ready to Rally!
next post
Tech 5: CoreWeave Inks US$11.9 Billion OpenAI Deal, Intel Gets New CEO

Related Posts

Market Movers in Action: How to Identify High-Probability...

March 7, 2025

Week Ahead: As NIFTY Breaks Out, Change Of...

June 29, 2025

Earnings Watch: Smart Setups in HD, PANW, and...

May 20, 2025

NVDA & Mag 7 Breaking Down; Russell 2000...

July 15, 2024

It’s GAME ON for These Stocks

November 7, 2024

Week Ahead: NIFTY May See Mild Rebounds; Painful...

November 16, 2024

Tech Stocks Take a Breather: Is Now the...

June 22, 2024

Growth is Alive and Kicking for S&P 500

May 23, 2024

Stock Market Pushes Higher, But Is There a...

June 14, 2024

Find Highest Probability Counter-Trend Setups

June 26, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • GOP rising star exposes how Biden admin was targeting him through controversial surveillance program

      October 4, 2025
    • Government shutdown enters 3rd day as Senate stalemate over Obamacare subsidies drags on

      October 4, 2025
    • Government shutdown sparks GOP plan to penalize lawmakers with new salary tax

      October 4, 2025
    • Trump, Johnson appear at odds in government shutdown messaging

      October 4, 2025
    • White House pressed about Trump seemingly changing his tune on Project 2025

      October 4, 2025

    Categories

    • Business (1,115)
    • Investing (3,185)
    • Politics (3,879)
    • Stocks (1,155)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved