S&P Monthly Chart Analysis

SPY ETF - S&P 500 - Monthly Time Frame

Looking at the monthly time frame, SPY remains well above its 10-month moving average and continues to trade within a long-term bullish channel. However, price is now testing a significant resistance zone. If SPY is unable to break above its current all-time high of 760.28, it could signal a move lower toward the 705–691 support area.

A decisive break below that support zone would increase the probability of filling the unfilled gaps beneath it.

Volume also warrants attention. April and May, despite strong buying pressure and higher prices, were accompanied by declining volume. In contrast, June has so far been characterized primarily by selling pressure, with volume already exceeding May's volume. While June's volume has not yet surpassed April's, the increase in selling volume relative to May suggests that distribution may be developing. If selling pressure continues to build, SPY could decline toward the 705–691 support zone.

Disclaimer:

I am not a licensed financial advisor, and the information provided is for educational and informational purposes only. It should not be considered financial, investment, or tax advice. Please consult with a qualified financial professional before making any financial decisions.