The below assessment is provided under the Financial Content Disclaimer at https://TSP.Live/financial-content-disclaimer/. Always consult with a licensed financial professional before trading. Nothing shared here should be interpreted as financial advice.
Financial Market Analytics Dashboard (FREE): https://tsp.live/fma-v2/
Momentum Indicator Trade Update
After months of patience, the short trade signaled last year by the Path Predictor Momentum Indicator has finally paid off. Following Monday’s market action, the trade was up +6.61%, and as of today, it’s holding at +4.28%.
For the first time in several months, the momentum indicator has shifted to a NEUTRAL stance on the technicals. As a result, the short…originally initiated around $550 on SPY…will be closed at tomorrow’s open, with the final trade performance updated based on SPY’s opening price.
Once the short closes, the momentum indicator will officially shift to a BULLISH outlook. If I were trading the signal personally, I’d be closing the short and immediately opening a long position. The next target on the upside would be a retest of the red line pivot at $563, as shown in the chart (link below).
Market at a Key Juncture
The market is currently sitting between two major pivots, making it difficult to get a clear read. As a swing trader, I prefer trading pivot touches/breaks, which we’re not quite seeing decisively right now…instead we are in the middle of two key pivots.
Technically, the touch and hold of the $494 pivot would’ve had me going long, waiting either for:
- A set profit target before the redline pivot were touched, or
- A touch of the red line pivot, which would signal an exit.
There are two distinct approaches at play here:
- Following the Path Predictor Momentum Indicator Table on the FMA Dashboard (linked at the top of this alert), or
- Trading purely off the Path Predictor Pivots, using pivot touches or breaks as direct entry and exit signals.
Each method offers a different lens, and the choice depends on your strategy and level of discretion in trading.
That said, this is a highly volatile market environment, and all traders should consult with a licensed financial advisor before making any investment decisions. Nothing shared here should be interpreted as financial advice.
SPY Chart: https://sblk.io/s/X353IJTOIxTgc3v
Good luck in your trades!