A Look At The Stock Market Following Independence Day Holiday: The Bull, Bear Case
Portfolio Pulse from Melanie Schaffer
Ahead of the Fourth of July holiday, the SPDR S&P 500 (NYSE:SPY) closed slightly higher on below-average volume. The ETF printed an inside bar pattern on the daily chart, indicating a bullish continuation, but a bearish quadruple top pattern could cause resistance near the $444 level. Traders can play the SPY either bullishly or bearishly through Direxion ETFs: Direxion Daily S&P 500 Bull 3X Shares (NYSE: SPXL) and Direxion Daily S&P 500 Bear 3X Shares (NYSE: SPXS). These triple leveraged funds track the movement of the SPY, seeking a return of 300% or negative 300% on the return of the benchmark index over a single day.
July 04, 2023 | 6:10 pm
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Bearish traders can trade the inverse ETF, Direxion Daily S&P 500 Bear 3X Shares (NYSE: SPXS), a triple leveraged fund that tracks the movement of the SPY.
As an inverse triple leveraged fund, SPXS offers the potential for significant gains if the SPY enters a bearish trend. However, it also carries a high level of risk due to its leverage.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPY closed slightly higher on below-average volume, indicating a bullish continuation. However, a bearish quadruple top pattern could cause resistance near the $444 level.
The SPY's inside bar pattern leans bullish, but the presence of a bearish quadruple top pattern could cause resistance near the $444 level, potentially limiting its upward movement.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Bullish traders can enter a short-term position in Direxion Daily S&P 500 Bull 3X Shares (NYSE: SPXL), a triple leveraged fund that tracks the movement of the SPY.
As a triple leveraged fund, SPXL offers the potential for significant gains if the SPY continues its bullish trend. However, it also carries a high level of risk due to its leverage.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80