The short term trend turned up today, but we are still below the 18 SMA and the weekly chart is bearish. We also closed above the highs of the last 7 days. The volume was pretty anemic, and no panic buying like when shorts are covering. Lets take a look at the 130 min. SPY chart.
I placed a new trend line below the the price action of the last few days. We broke above the upper trend line from Friday. During the day we went back and tested that line from above and rallied into the close. This keeps the short term bounce alive for now.
I thought with the high volume for several days into the low that we would bounce back to 1340 rather easily. Six days off the low and we still have not made it. There seem to be plenty of sellers out there yet. After four days of narrow range closes, we broke above last week's high this morning. The rally didn't even last 1.5 hours before the bears took over. I thought the bulls would have done better then that. This rally looks pretty fragile. I will be watching that lower trend line and the 60 minute 50 SMA for clues on the end of the bounce. We will see if we can at least get to 1340.
Bob
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