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Thursday, September 12, 2013

Daily update 9/12

Wow, a down day.  How did that happen?  Here is the daily SPX chart.

SPX got a little above yesterday's high, but was met with a bit of selling.  This is a resistance zone and that won out today.  Lets look at the SPY 60 minute chart.

SPY ended the day just below the 18 SMA.  This is a possible support area if the bulls feel aggressive we could rally again tomorrow.  If we end up below this afternoon's low tomorrow then we could be on the way to test the 9/10 gap area marked by the two horizontal green lines. 

There was not a lot of volume behind the sell off.  It looked more like just profit taking on the rapid move up.  I am not sure that tells us much about how stiff the resistance might be in this area.  The market paused in this area for weeks before the latest pullback.  I think it stands to reason the resistance could be significant.  It may take some time to sort it out.  Possibly not until after the FED meeting next week.  I can believe people might not be willing to bid prices up much from here until they get clarity on taper.   That could lead to some trading range action for now.


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