Is The SPY Headed For A Bull Cycle? This Fund Offers 3X Leverage: Quick Take Technical Analysis

Direxion Daily S&P 500 Bull 3X Shares SPXL shot up 2.54% higher on Friday, in tandem with the SPDR S&P 500 SPY which climbed 0.85%.

SPXL is a triple-leveraged fund that tracks the movement of the SPY, seeking a return of 300% on the benchmark index over a single day.

The move higher caused SPXL to negate its downtrend by printing a higher high on the daily chart. The most recent lower high was printed at the $74.59 mark on Monday.

For an uptrend to confirm, SPXL will eventually need to retrace to print a higher low above $69.58. The ETF closed the trading day near its high-of-day, printing a bullish Marubozu candlestick, which could indicate higher prices will come again on Monday.

The second most likely scenario is that SPXL forms an inside bar pattern on Monday to consolidate Thursday and Friday’s move higher. If that happens, the pattern will lean bullish for continuation.

SPXL has resistance above at $75.74 and $79.03 and support below at $71.96 and $67.66.

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