Quiet Wednesday, Explosive Thursday? The SPY Consolidates Ahead Of Key Inflation Data
Portfolio Pulse from Melanie Schaffer
The SPDR S&P 500 ETF (SPY) showed slight gains on Wednesday, continuing its consolidation after Monday's significant rise. The market is anticipating key US consumer inflation data set to be released on Thursday, which could significantly impact the direction of SPY. Traders looking to take short-term positions based on the upcoming data may use the Direxion Daily S&P 500 Bull 3X Shares (SPXL) for a bullish stance or the Direxion Daily S&P 500 Bear 3X Shares (SPXS) for a bearish approach. Both SPXL and SPXS are triple-leveraged ETFs tracking SPY's movements. The article suggests that SPXL is showing a bullish pattern but warns of a potential new downtrend if negative market reactions occur after the inflation data release.
January 10, 2024 | 6:10 pm
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NEUTRAL IMPACT
SPXL, a bullish triple-leveraged ETF tracking SPY, is showing bullish signals but may face a new downtrend if inflation data disappoints.
SPXL's direction is contingent on the market's reaction to inflation data, with current bullish patterns potentially reversing if the data is negative.
CONFIDENCE 70
IMPORTANCE 85
RELEVANCE 70
NEUTRAL IMPACT
SPXS, a bearish triple-leveraged ETF tracking SPY, could gain if inflation data triggers a market downturn.
SPXS may benefit in the short term if the inflation data is unfavorable and leads to a market decline, aligning with its inverse relationship to SPY.
CONFIDENCE 70
IMPORTANCE 85
RELEVANCE 70
NEUTRAL IMPACT
SPY is consolidating with slight gains, awaiting key inflation data that could influence its price direction.
SPY's short-term impact is neutral as it consolidates, but the upcoming inflation data could cause significant movement in either direction.
CONFIDENCE 75
IMPORTANCE 90
RELEVANCE 80