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Market Update

In Fridays trading we were not able to break above the 50 SMA at 108.93on the daily charts. In a last four days of trading we have broken below th 20, 50, and 200 SMA on the daily chart. The longer we stay below the 50 SMA the more I believe we will trade lower and possible test the 105.80 then 105.00 level. If we do start to head lower in the markets will concentrate on the financials, this sector has being relatively weak over the past few week, which contributed to the SPY not holding above 113.00 level.

If the SPY opens lower and we start to trade higher will expect the 50 SMA to hold as resistance and possible initiate a short position here with a swing high on the 15 min. charts as an entry. Until we are able to break back above 109.00 longs are lower probability trade. Now if we do break and hold above the 109.00 lvl will expect the 20 SMA at 110.60 to hold as resistance.

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Categories: Chart Talk
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