SPDR S&P 500 (SPY) Stock: Breakout Leveraging Tech Stocks Rally?

• SPDR S&P 500 may witness a surge as tech and semiconductor stocks witness expansion.
• SPY stock has gained 6.20% since the beginning of 2023.
• Several sectors are in the list of gainers this year.

SPDR S&P 500 ETF Trust witnessed a positive comeback in 2023, as major investments fuel an uptrend. The market in 2022 was a Tilt-A-Whirl rather than a Merry-Go-Round for equity investors, as many months went flat without any signs of gain. SPDR S&P 500 ETF Trust has invested in several sectors, with info-tech making up for one-fourth of the portfolio.

SPDR S&P 500 ETF Trust allocates its funds into common stocks, listed under the S&P 500 index. Its current top holdings comprise of Apple (AAPL)- 6.62%, Microsoft (MSFT)- 5.59%, Amazon (AMZN)- 2.51%, NVIDIA (NVDA)- 1.74%, and several shares including Alphabet, Berkshire Hathway, Tesla and Meta Platforms. The portfolio saw some changes after tech giants announced mass lay-offs. Most of the ETF’s holdings are positive and are listed among the biggest gainers. 

Tech Stocks In SPDR S&P 500 ETF Trust to Decline?

Several blue chip companies laid off employees in huge numbers last year and this year. The trend affected the index reflecting in tweaks in the holdings. Another major change it witnessed with the semiconductor stocks, as they continue to surge amid inflationary markets. NVIDIA, under the S&P index, is the fastest company to reach $1 billion in revenue. The computer processor maker recently announced several developments earlier this month, causing a surge in NVDA price.

Several developments including the introduction of a federal program affected the EV industry explaining the volatility in EV stocks including Tesla which recorded a surge. Meanwhile, Amazon announced another round of lay-offs, axing 9,000 jobs globally.

SPY Stock Prognosis

SPDR S&P 500 ETF Trust, or SPY stock, formed a wedge pattern, with current price hinting at a future breakout on the 1-day chart. The projected breakout may witness a rise of more than 10%. SPY stock price retraced, taking support at $380.14 and moved closer to the upper trend line. The volume shows a highly volatile market pertaining to the ups and downs in various stocks.

The EMA ribbon formed a bullish crossover (green circle), indicating a possible bullish uptrend. The RSI surged into the upper ranges, indicating positive buyer influence. The MACD formed a positive cross and recorded ascending buyer histograms. Indicators are largely bullish, supporting the anticipated rally and targetting $447.35.

Conclusion

SPDR S&P 500 ETF Trust, or SPY stock, formed bullish patterns, currently hinting at a possible bullish breakout. The portfolio shows various developments that can change the course of action for SPY stock. The holders can rely on the support near $380.14, and wait for a bullish breakout.

Technical levels

Support levels: $380.14 and $349.20

Resistance levels: $420.03 and $447.35

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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