S&P 500: Buy Until The Music Stops. Week Starting 3rd February (Technical Analysis)

Andrew McElroy
16.5K Followers
(9min)

Summary

  • The S&P 500 followed a predictable pattern last week.
  • Friday's sell off damaged the bullish look, but January still registered as a bullish month.
  • A reversal could develop in February. Recognizing how and where the bias shifts allows us to define our risk and continue to buy as long as the trade makes sense.
  • Next week's focus is on Alphabet's earnings and NFP data, and a potential early-week low near 6000 could set up a later rally.

Currency and Exchange Stock Chart for Finance and Economy Display

cemagraphics

The S&P 500 (SPY) completely recovered the DeepSeek (DEEPSEEK) drop by Friday and closed the 6101 gap before dropping again. This was a predictable sequence of events as markets often trade the same way when a

This article was written by

16.5K Followers
Andrew McElroy is Chief Analyst at Matrixtrade, author of the ebook 'Fractal Market Mastery' and producer of the 'Daily Edge.' The 'Daily Edge' is emailed before each US session and outlines actionable ideas, directional bias, and important levels in the S&P500. It also looks at 'What's Hot,' on any particular day, whether it is commodities, stocks, crypto, or forex. Andrew has developed a top-down proprietary system that starts with his weekend Seeking Alpha article focusing on the higher timeframes. Fractals, Elliott Wave, and Demark exhaustion signals are all incorporated, as are macro drivers and analysis of the market narrative. It is much more than just a few lines on a chart - it is a system developed over 15 years and proven to deliver a consistent edge. An independent trader since 2009, Andrew manages a family portfolio of stocks and ETFs with his wife and fellow Seeking Alpha contributor Macrogirl.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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