SPY Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: Strong market fundamentals and positive earnings surprises could propel SPY higher, supported by historical resilience shown in red on the return surface for holding periods over a year.




Bearish Case: Persistent inflation and geopolitical tensions may lead to increased volatility, triggering downside risks, evident by the flat recent price action and options backwardation.




Potential Outcomes:
  • Fed maintains rates, market rallies (55% probability).
  • Inflation forces rate hikes, market dips (30% probability).
  • Geopolitical issues trigger volatility spike (15% probability).



March 12, 2025


 SPDR S&P 500 Forecast

SPY         SPDR S&P 500











Correlated Assets

Assets that tend to move strongly with SPY



VOO Forecast + Options Trading Strategies   VOO  Vanguard S&P 500 (1.0)


IVV Forecast + Options Trading Strategies   IVV  BTC iShares Core S&P 500 (1.0)


IVW Forecast + Options Trading Strategies   IVW  BlackRock Institutional Trust Company N.A. - iShares S&P 500 Growth (0.99)


VIG Forecast + Options Trading Strategies   VIG  Vanguard Group, Inc. - Vanguard Dividend Appreciation FTF (0.97)


GLW Forecast + Options Trading Strategies   GLW  Corning (0.97)



Uncorrelated Assets

Assets with little price relationship to SPY



VERA Forecast + Options Trading Strategies   VERA  Vera Therapeutics (-0.01)


AEHR Forecast + Options Trading Strategies   AEHR  Aehr Test Systems (0.01)


FXY Forecast + Options Trading Strategies   FXY  Invesco CurrencyShares Japanese Yen (-0.02)


VERV Forecast + Options Trading Strategies   VERV  Verve Therapeutics (-0.02)


SMIN Forecast + Options Trading Strategies   SMIN  BlackRock Institutional Trust Company N.A. - iShares MSCI India Small-Cap (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against SPY



SAGE Forecast + Options Trading Strategies   SAGE  Sage Therapeutics (-0.86)


LYB Forecast + Options Trading Strategies   LYB  LyondellBasell Industries (-0.87)


WU Forecast + Options Trading Strategies   WU  Western Union (-0.87)


COTY Forecast + Options Trading Strategies   COTY  Coty (-0.87)


DVN Forecast + Options Trading Strategies   DVN  Devon Energy (-0.9)









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