Tuesday, April 10, 2012

Technicals: SPY Broke Uptrend Line, 2011 Support, and 50DMA

When SPY tripped on the uptrend line, that was a decent signal to protect against downside risk, imo. It broke the uptrend line at around $140, and is now trading at 136.63, which is below 2011 support (the high, now support) and the 50 day moving average. Is the market falling because of the disappointing employment report on Friday? Spanish sovereign debt and bank risk rising in Europe? Poor S&P earnings ahead? If there isn't a positive market catalyst, SPY (the S&P ETF) could trade in a channel between the the pre-flash crash high (around $121) and the high May 2011 high ($137).

Source: FreeStockCharts.com

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