Market Update

Yesterdays price action was relatively slow, the SPY opened up near the highs of yesterday but immediately sold off creating downward pressure for the morning session and there was not much in the way of increased expectations of trade scenarios in the afternoon trading. We did not continue to move lower from the morning sell off, and looking at the daily charts we see that the SPY created an inside day from Wednesdays trading. The interesting thing is that we are holding above the channel we broke out a few days ago with the 111.00 level now holding as support on the SPY. As long as we can hold this level I am confident that we will be able to test the 50 SMA; around the 144.50-115.00 area to create the second shoulder of the ‘head and shoulder’ formation. With the strong close we had at the end of the day in all three markets I will expect the buying pressure to continue in todays trading.

 

 

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