I am starting to get a little nervous after re-charting the impressive gains made by $SPY today. In my last post on Sunday December 27th, I thought SPY was going to continue its downward leg to fill the gap between ~$204.75 and $203.75, which it very nearly did on Monday. However, it quickly erased its early losses and formed a green hammer pattern by the close. With the gap up in price this morning and strong buying forces throughout the afternoon, it seems as though my prediction of retesting $200.00 by the end of the week may be invalid. I am still bearish overall and think the market will see further selloffs in the beginning of the new year, but with the wind at its back, I'm thinking SPY might try one last attempt at breaching its mid-December high of ~$208.25 before turing back around.
TECHNICAL ANALYSIS:
Agree? Disagree? Let me know! Any and all feedback is greatly appreciated. Thanks, and Happy Trading!
TECHNICAL ANALYSIS:
- Candlestick: Solid green, very little wick at top of candle (Shows buyers had control of the market today, but ran a little short of $207.50 resistance. Also shows strong buy-side momentum)
- Volume: Increasing buying volume
- Stochastic (Slow): %D Just breaching the 80% mark, %K not quite there yet (Very slightly bearish--There's still some buy-side maneuverability)
- MACD: Histogram moving into positive territory (Bullish)
Agree? Disagree? Let me know! Any and all feedback is greatly appreciated. Thanks, and Happy Trading!
