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Stock market: Watch this level on the S&P 500 SPDRs (NYSE: SPY)
| February 16, 2012 | Posted by admin under Stocks & Stock Market Analysis |
SPY, the S&P 500 SPDRs ETF, finished down only 0.47% but the red bar looked quite big with the higher open and then closing right near the lows.
There isn’t anything significant about the move today in itself, but there is a significant level close by which deserves attention.
Watch 133.60. A drop below could trigger selling into 132-131.30. If the correction runs deeper than that level (131.30) a much bigger correction becomes more likely.
We will see how this plays out over the coming days, but for now watch 133.60 on the downside. On the other hand, the market put in a new high this morning, and then sold off aggressively mid-day. A rally back towards the high at 135.83 may be enough to trigger another push to the upside.
In this weekend’s newsletter I will look at the state of the market in more detail, as well as look at the seasonal patterns of stocks (which I recently did for the EURUSD and AUDUSD).
S&P 500 SPDRs (SPY) Daily Chart
Regards,
Cory Mitchell, CMT
Quite a move so far today as we broke through yesterday’s high. At 12:08 we are trading in a longer-term resistance band. Watch 135.85 into the close as it could trigger some selling if we get below it. Whereas a rise back above the intra-day high at 136.10 could put bears in a panic mode and we got a bit further.