$SPY Remains in a Long-Term Bull Cycle, Pullbacks Could Create Opportunities
Our $SPDR S&P 500 ETF Trust(SPY)$ read has been dialed in lately, and the core view hasn't changed: bullishly cautious.
The long-term bull cycle remains intact, but we're heading into one of the market's historically weakest months, September. Historically, $SPY tends to finish the month in the red.
📉 The key short-term zone is the 768–750 gap.
There's currently a price gap between 768 and 750 on the daily chart. Our base case is a short-term pullback into that zone, representing roughly a 1.5%–2% decline.
That's completely normal and healthy within a broader bull cycle.
If the pullback extends further, a roughly 3% correction over the next 30–45 days toward the smart-money zone wouldn't surprise me either.
💡 For bulls, that's an opportunity rather than a problem.
So the plan is simple: change nothing.
Shorting here doesn't offer an attractive risk/reward profile. The long-term bull trend is still intact, so I'd rather continue taking high-quality long setups while keeping a close eye on $SPY.
🚀 Of course, there's always a chance we skip the dip and continue ripping higher from here.
As for a deeper ~10% correction, it's possible, but it doesn't become a serious concern for me unless 730 breaks.
The bull cycle is intact. A pullback would simply create another opportunity to buy.
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