SPX has the 12/3 reversal bar and now a doji bar at the daily 50 SMA. Volume dropped off over the three day bounce back up to that 50 SMA. This is definitely still a possible double top here. SPX must close above that 12/3 high before bulls can relax a bit. The 18 SMA has moved up to about the same level as the last swing low on 12/5. That is the middle low between the two highs. If SPX breaks that low it will also break the 18 SMA. That should target the 200 SMA. If that breaks, we should retest the Nov. low. Lets zoom in to the 30 minute SPY chart.
I looked at several intraday time frames, but I did not see much of interest. We are clearly stuck at resistance waiting for the market to decide what it wants to do. The 30 minute chart showed the last bar was the heaviest volume of the day on a slightly down candle. Sometimes the market will follow through the next day on a bar like that. We will just have to see what the morning brings.
Will the market reverse from all this resistance here, or will it gap up above and take off. I think it will take a positive piece of news to make that happen. That seems to be in short supply. The market has so far shrugged off some pretty poor economic news coming from around the globe. Will it continue to not matter?
Chart practice has been updated with EBAY the stock today.
http://traderbob58-chart-practice.blogspot.com/
Bob
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