Explain Market Movement? SPY?

mii

Member
VIP
Guys , why did spy make huge downward move and then huge upward move . News is that inflation still exists but it didnot increase . I was hoping an upward move in the morning but was not able to understand what’s the reason for downward move ? Any analysis ?
 
Solution
Guys , why did spy make huge downward move and then huge upward move . News is that inflation still exists but it didnot increase . I was hoping an upward move in the morning but was not able to understand what’s the reason for downward move ? Any analysis ?
May 31 was last day of month: institutional rebalancing (Mutual Funds, Indexes, brokerages, etc.)
...and May 31 being a Friday which recently has been known as "Crush VIX Friday".
...and summer doldrums about to start: "Sell in May and go away".

| SPY | -VIX (inverted) | SPY with VIX (inverted) |:

1717272647177.png
SPY, an ETF, moves much the same as SPX, the index of the S&P 500, so it will move with the overall stock market... Personally, I don't care so much about the "why" anymore because I simply scalp SPY Options in accordance with what the market presents... I don't over-analyze the market these days, I just trade what comes along...

Compare SPY and SPX to what the Mag-7 Stocks (AAPL, AMZN, GOOGL, META, MSFT, NVDA, TSLA) do and you'll see that more times than not they all move in the same direction at the same time... Hoping or attempting to predict what the market will do is an act of futility for the most part...

Do you trade SPY or SPY Options, or just curious...???
 

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

Guys , why did spy make huge downward move and then huge upward move . News is that inflation still exists but it didnot increase . I was hoping an upward move in the morning but was not able to understand what’s the reason for downward move ? Any analysis ?
If you look at the Daily timeframe we are overall bullish and it looks like the downward move was a liquidity sweep to run stops then move the price in the intended direction which is currently in an uptrend (although the market is looking a little toppy to me). The marketmakers/algos like to target liquidity pools.
 
If you look at the Daily timeframe we are overall bullish and it looks like the downward move was a liquidity sweep to run stops then move the price in the intended direction which is currently in an uptrend (although the market is looking a little toppy to me). The marketmakers/algos like to target liquidity pools.
I understand , thank you ..
 
SPY, an ETF, moves much the same as SPX, the index of the S&P 500, so it will move with the overall stock market... Personally, I don't care so much about the "why" anymore because I simply scalp SPY Options in accordance with what the market presents... I don't over-analyze the market these days, I just trade what comes along...

Compare SPY and SPX to what the Mag-7 Stocks (AAPL, AMZN, GOOGL, META, MSFT, NVDA, TSLA) do and you'll see that more times than not they all move in the same direction at the same time... Hoping or attempting to predict what the market will do is an act of futility for the most part...

Do you trade SPY or SPY Options, or just curious...???
I understand markets are volatile and unpredictable . analyzing sure helps where to enter the trade for me. Like you said just playing what is presented is safe and good for scalping . Today Iam in a long trade and it was successful . Still figuring out which trading style best fits me . Thank you for the inputs very helpful info .
 
I thought the whole day was rather bizarre. A slow low-vol grind lower for the first three hours followed by a slow low-vol grind higher for about three hours capped off with a massive spike higher in the last half hour. I don't remember ever seeing anything quite like that before. I guess it had something to do with the end of the month and possibly options expirations.
 
Guys , why did spy make huge downward move and then huge upward move . News is that inflation still exists but it didnot increase . I was hoping an upward move in the morning but was not able to understand what’s the reason for downward move ? Any analysis ?
May 31 was last day of month: institutional rebalancing (Mutual Funds, Indexes, brokerages, etc.)
...and May 31 being a Friday which recently has been known as "Crush VIX Friday".
...and summer doldrums about to start: "Sell in May and go away".

| SPY | -VIX (inverted) | SPY with VIX (inverted) |:

1717272647177.png
 
Solution

Similar threads

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
293 Online
Create Post

Similar threads

Similar threads

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top