SPY accumulation

4 Mei 2022

SPY is showing signs that sellers are getting exhausted. This chart shows the price of SPY in a wedge and these types of wedges are typically bullish. The idea is to start accumulating during early buy signals and dollar cost average to minimize risk (no more than 20% of your capital). Should it continue to drop the next potential entry would sit around 339 which is where the majority of buy orders are sitting, waiting to enter. I would be willing to buy a bit more aggressively (an additional 40% of capital). We saw aggressive selling like this towards the end of 2018 with a 20% correction and started getting early buy signals at the start of 2019. Right now we are currently at a 15% correction but signs of seller exhaustion is starting to show.