"Everyone has a plan 'till they get punched in the mouth" - Mike Tyson

May 02, 2012

A look at SPY


This is my daily view of the S&P 500 ETF.  We are currently trading below the lower trendline of a pattern associated with market tops.  With major long term resistance at 142, the bears have two significant levels to trade against.  Until this changes, I must maintain a market neutral stance. That said, the moving averages and rising trendline clustered together give a very powerful support level for bulls to trade long against.  If that cluster of support is clearly lost, there may a sharper drop in the markets as there is no strong support untill 135.80.  I will wait until the market leaves the congestion zone to chose my positioning.  Until then, trade em' well.



Reminder:

All ideas shown on this blog represent the authors opinion based on the data available.