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- 1 SPY stock rose 2.15% in one week.
- 2 S&P 500 closed the March 21 session at 4,002.87 after policymakers gave assurances on the stability of the financial system.
The corresponding ETF of S&P 500 ETF closed at $398.91 on March 21, Tuesday with a 1.31% intraday gain. The gain is 3.5% up from its March 13 lows. This price surge was followed by a similar upsurge in inflow volume thus validating the strength of the rebound. Meanwhile, the S&P 500 index reclaimed the crucial threshold of 4,000 on Tuesday.
SPDR S&P 500 ETF Trust (NYSEARCA: SPY) is an Exchange Traded Fund (ETF). It seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500 Index.
SPY Stock Price Analysis
SPY stock noted 4 consecutive days of inflows totaling nearly $15 billion for the week ending on March 20 and made the week best since June 2022. As on March 15, “$7.2 billion was pumped into SPY, which was the largest daily inflows since Nov. 9, 2020, when the COVID-19 vaccine was revealed.”
SPY stock showed a bullish outlook while it crossed its 100-days EMA. SPY stock seems like testing a multi-resistance region, including the 200-day EMA and the 50% Fibonacci level of the February-March bearish range. The RSI of SPY stock is at 51, for the first time since March 6.
FOMC Meeting Importance
As the FOMC meeting is scheduled on March 22, that will be a critical event for SPY’s near future. However, the markets almost completely discounted a 25 bps hike, still Fed’s plans to do beyond March will be all-important to monitor.
While SPY stock is attempting to find support around $392, the Fed pushes back against market pricing, which anticipates a terminal rate of 4.9% in May and two rate cuts before the end of the year, and reiterates its commitment to slow inflation.
Moreover, in case the Fed reinforces the need for liquidity in the financial system and temporarily halts efforts to battle inflation, it would probably boost investor confidence in stocks, and push SPY stock to hit March highs of $407.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
