It Can't Possibly Go Any Higher...
Why It Matters
Understanding the likely shallow pullback and its confluence zones helps traders position for the next leg of the rally, avoiding emotional short‑sells and capitalizing on inbound capital seeking exposure to the market’s continued upside.
Key Takeaways
- •Expect a shallow pullback near 675‑680 as higher‑low opportunity.
- •Weekly chart shows bullish structure with new all‑time‑high close.
- •Confluence zones include 20 SMA, anchored VWAP, and volume profile.
- •Side‑line capital likely to enter, fueling continued upward momentum.
- •Short positions discouraged; focus on long entries after modest retracements.
Summary
The video opens with Matt warning viewers not to be surprised by market moves, emphasizing that emotional reactions lead to poor timing. He then dives into the SPY weekly chart, highlighting a solid green‑bodied bar, higher highs and higher lows, and a new all‑time‑high close that cements a bullish trend. The analysis points to two possible paths: a continuation rally or a shallow pullback that creates a higher‑low around the 675‑680 zone, supported by the 20‑day SMA, anchored VWAPs, and a volume‑profile point of control. Matt’s daily and hourly breakdown reinforces the weekly outlook. Expected‑move calculations place the upper bound near 72,112 and the lower bound near 69,916, both still above prior highs, indicating bullish bias. He notes that sellers have struggled to retrace gaps, and that thin market structure makes a modest pullback more likely than a deep correction. Confluence from Fibonacci 38.2%, VWAP clusters, and moving averages further validates the 675‑680 pullback as a strategic entry point. Throughout the discussion, Matt stresses that the market’s momentum is being fed by large amounts of capital waiting on the sidelines. He advises against shorting, suggesting traders focus on long positions that capture the higher‑low pullback and then ride the continuation toward the weekly upper target. The video concludes with a brief look at market internals, showing strong volume on the latest rally and confirming that the upward move remains robust. Overall, the analysis blends technical patterns with market‑flow insights, offering a clear trade plan: wait for a shallow retracement near 675‑680, enter long, and target the next weekly high while managing risk around the identified confluence zones.
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