SPX is approaching the 18 SMA. It climbed back into the red price channel today. The trend bias flipped back to up today as well. There were 85 new highs and breadth was 67% positive. The new highs were a weak stat for such a big up day. The breadth was pretty decent. We will have to see what happens if the market continues higher. The low of the key reversal day and the 18 SMA are in the 1648 area. That and the even number 1650 may provide resistance. The two red horizontal lines mark the .618 to .786 retrace zone. If it gets above 1650 that would be another area that could provide resistance. Lets zoom in to the 60 minute SPY chart.
SPY shot right through the down trend line early this morning. In the afternoon it tested that line from above and also the 50 SMA. Finding support there it rallied into the close. Pretty hard to argue with the price action for now.
I have outlined some possible resistance areas up above. The hourly 50 SMA is a good bull/bear line for now. Even though the trend flipped to positive today the down move did some technical damage. The trend will often flip around in the early stages of a correction. It won't take near as much to turn it down again as it did last time. Lets see how far up it goes.
Chart practice has been updated with an article on falling knives.
http://traderbob58-chart-practice.blogspot.com/
The market and sector status pages have been updated. Have a great weekend all.
Bob
No comments:
Post a Comment