The SPY has been rallying the last few hours of the session. This is due to the FED announcement regarding the so called Tapering.
The weird thing is that previously, every time there was a Taper talk, the markets would panic and slide down. Now, when the FED announced an actual date where the Taper will initiate, the market actually rallied.
On the technical side, SPY resides on a multiple day high and a yellow PivotBreak line which acts as resistance. Not only the price sits right on the resistance level, but we made it there on a big green candle with unusual high volume. That is definitely a Bullish sign, and I wonder if we will have any chance of buying the SPY tomorrow at a reasonable price. Chances are that we will see a big Gap Up.
The weird thing is that previously, every time there was a Taper talk, the markets would panic and slide down. Now, when the FED announced an actual date where the Taper will initiate, the market actually rallied.
On the technical side, SPY resides on a multiple day high and a yellow PivotBreak line which acts as resistance. Not only the price sits right on the resistance level, but we made it there on a big green candle with unusual high volume. That is definitely a Bullish sign, and I wonder if we will have any chance of buying the SPY tomorrow at a reasonable price. Chances are that we will see a big Gap Up.