The S&P 500 (SPY) is coiling on the all-important 200 day mavg. I feel the setup is constructive as we have been holding it and the $400 area pretty well.
Plus, stocks had a rough 2022, and statistically bull markets follow bear markets after 1-2 years. So, SPY is due to resume its historical averages of returning 7%/YR.
However, a rising tide raises and lowers all ships. So, if SPY breaks the 200, all hell could break lose to the downside. The million dollar question is, therefore, how low can she go from here at around $400?
Many people say $380 is the next stop. But, $380 is not that far from here. So, why not anticipate that early and buy now? Sure seems like the market is already sniffing this out, as we hold the 200 day mavg. But, what are your thoughts? Thanks!
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