$SPY 115 SUPPORT IN PLAY, BROKE 50DMA, POTENTIAL TARGETS (S&P 500, SPY, VIX, VXX)

The large speculative S&P E-mini future shorts (see April 28 post) and the $IWM puts opened on April 15 are making loot or successfully hedging this breakdown. The 61.8% retracement definitely had a say in this sell off, imho. I've been behind the curve reporting on $SPY but as you can see it formed a head and shoulders top, took out the $118 floor and today broke through the 50 day moving average and long term uptrend from March (see charts below). Now $SPY bears have to battle the strong $115 support level.

Like I said in late March, if $115 gets taken out I'm thinking the market could be pricing in "double dip" recession risk or an economic growth retracement ahead.  That's yet to be seen. If $SPY hits $115 I wouldn't be surprised to see a bounce. See charts below and a video with potential support levels and fibonacci retracements for the S&P 500 and $SPY.  I added the charts of VXX and VIX (volatility index).

SPY (SPDRS S&P 500 ETF) - Courtesy of FreeStockCharts.com

SPY zoomed out to March 2009 lows, with retracements


Adam Hewison of MarketClub Blog on S&P breakdown, divergences (hes been spot on)


VIX (Volatility Index) vs. SPY... Stock Insurance is rockin

VXX (VIX Short-Term Futures ETF) vs. SPY

Related Posts

Comments

HTML Comment Box is loading comments...