Thought SPY was finally gonna dump but buyers kept stepping in
I have been trying to improve my intraday entries lately, especially on SPY momentum setups, and one feature that actually helped during this trade was the Level 2 order book on moomoo.
The setup
Going into the session, I thought SPY looked overextended already and expected sellers to step in near the close.
But after watching the 1-minute K-line chart and order flow for a while, I noticed buyers were still defending pullbacks aggressively instead of letting price roll over.
Features I used during the trade
1. K-line chart + moving averages
I used the 1m chart with MA5, MA10, and MA20 to track short-term momentum.
Things that stood out:
- SPY kept printing higher lows
- price stayed above short-term moving averages
- momentum stayed intact even during pullbacks
- volume started increasing late session
That made me more cautious about trying to short the move too early.
2. Level 2 order book
This was honestly the most useful feature during the trade.
While watching the order book, I noticed:
- bids refreshing repeatedly near 737.6
- sell orders getting absorbed quickly
- very little aggressive selling pressure
- buyers stepping in almost immediately after dips
Seeing the bid support hold multiple times gave me more confidence that momentum wasn’t finished yet.
Instead of fading the rally, I waited for consolidation and entered after SPY reclaimed short-term resistance.
- Real-time news feed
I also checked the news tab during the trade to understand why momentum was staying strong.
The feed was full of:
- AI momentum headlines
- semiconductor strength
- bullish tech sentiment
- broader market optimism
That helped explain why SPY kept grinding higher despite looking extended already.
My trading approach
I usually combine:
- chart structure
- order flow
- market sentiment
before entering momentum trades.
For this setup:
- the K-line chart showed trend continuation
- Level 2 confirmed buyer strength
- the news feed supported bullish sentiment
Having all three in one place made it easier to stay patient and avoid forcing a bad entry.
Ended up taking calls after consolidation and scaled out gradually into strength near the close.
Still think the market feels overheated overall, but this trade was a good reminder not to fight momentum without confirmation first.