SPY intraday penetrated 200d EMA on 5/3, but the bull pulled it up before the market close. 200d EMA has been tested for 3 times in 2018 and proven a strong support. If the 200 EMA breaks out, the next support is 258.
On the other hand, the unconfirmed resistance (blue line) is about to cross with 50d EMA. It is likely the price will go slightly above 50d EMA and face a resistance at 268. If Stoch goes above 85 at the same time, a short position is encouraged. The triangle breakout is around the corner in 2 weeks. Let's see which direction it shall go.
On the other hand, the unconfirmed resistance (blue line) is about to cross with 50d EMA. It is likely the price will go slightly above 50d EMA and face a resistance at 268. If Stoch goes above 85 at the same time, a short position is encouraged. The triangle breakout is around the corner in 2 weeks. Let's see which direction it shall go.
Comment:
SPY tested the blue resistance for two days and was rejected. Consider entering a short position. Exit somewhere slightly above 200EMA, and stop loss if SPY closes above 50EMA to minimize loss.
Comment:
Triangle breakout today, a very strong bullish signal. Stop shorting.