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Tuesday, January 7, 2014

Daily update 1/7

Interesting day.  Yesterday SPY broke down from a triangle, but decided it didn't like that idea.  Here is the daily SPX chart.

SPX closed just below the the 1838 resistance level mentioned last night.  There was a big increase in volume today.  That looks like it should be bullish doesn't it?  Lets zoom in to the SPY 60 minute chart.

SPY struggled with the 50 SMA all day.  Every hourly bar it closed above it the next hourly bar was down.  At the end of the day it closed right at it.  The false break down from the triangle should lead to an upside break out.  The bulls could not break through the resistance today, but they beat on it pretty good.  It seems inevitable that they win the battle.  That should set up a test of the all time high.  I think that lower trend line is still a valid line to watch.  If SPY breaks down below it again it is likely to continue down this time. 


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