Catch Your Insight
  • Investing
  • Tech News
  • Stock
  • World News
  • Editor’s Pick
Editor's PickStock

The V Reversal is Impressive, but is it Enough?

by May 9, 2025
May 9, 2025

Stocks plunged into early April and surged into early May, suggesting that a “V” reversal is in the making. There are two parts to the V reversal. First, there is the V, which is the plunge and the rebound. Second, there is the breakout move that completes the reversal. SPY fulfilled the V part, but has yet to actually reverse the long-term downtrend.

The chart below shows SPY falling 20% from late February to early April and then surging some 14% into early May. This move created the V as SPY nears the 200-day SMA and the March support break. The blue-pink shading marks broken support turned resistance in the 575-580 area. We also have the 200-day SMA marking resistance here. Thus, SPY is clearly at a moment of truth. A push through 580 would break the 200-day SMA and negate the March breakdown. This would be bullish price action.  

There is more to a V reversal than price action. TrendInvestorPro went back and studied four V reversals over the last 11 years. They all feature capitulation and a sharp V-shaped recovery. However, it is upside participation that holds the key to moving from bear market to bull market. We need to see a significant increase in upside participation and key breadth indicators cross specific thresholds. These indicators include the percentage of stocks above their 200 and 150 day SMAs, and High-Low Percent.

This week TrendInvestorPro produced a detailed report and video analyzing the prior V reversals and the key participation levels to watch. Among other ETFs, this week’s reports featured the Cybersecurity ETF (CIBR), the ARK Fintech Innovation ETF (ARKF), the Utilities SPDR (XLU) Bitcoin ETF (IBIT), Gold SPDR (GLD) and DB Agriculture ETF (DBA). Click here to take a trial and gain full access.

/////////////////////////////////////////

previous post
Friday Feature: MCP Academy
next post
Confused by the Market? Let the Traffic Light Indicator Guide You

You may also like

Week Ahead: NIFTY Stays In A Defined Range;...

May 31, 2025

Breakouts, Momentum & Moving Averages: 10 Must-See Stock...

May 31, 2025

Leadership Rotation Could Confirm Corrective Phase

May 30, 2025

Run Your Stock Portfolio Like a Pro Sports...

May 30, 2025

Large-Scale Food Stamp Fraud

May 30, 2025

Texas Embraces Medical Talent—Unless You’re from the “Wrong”...

May 30, 2025

Friday Feature: Solstice Hybrid Academy

May 30, 2025

Record Student Visa Denials Before Trump: 41 Percent...

May 30, 2025

Cato’s Contributions to Justice

May 29, 2025

The Historical Ratio Between Dropout and High School...

May 29, 2025

    Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • Large-Scale Food Stamp Fraud

      May 30, 2025
    • About us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 catchyourinsight.com | All Rights Reserved

    Catch Your Insight
    • Investing
    • Tech News
    • Stock
    • World News
    • Editor’s Pick