SPY
traded within the late December early January range during today's session. Since SPY experienced much consolidation at the range during that prior time period, it is possible SPY has rebounded off the resistance turned support. Although SPY currently sits below the 20 day MA, it is still above the 50 day MA plus the daily Ichimoku Cloud signifying possible continued bullish momentum. In addition, a close above the open coupled with higher than average volume is indicative of a possible uptrend. By taking a Fibonacci retracement from the Jan 16 close and the ATH, it is evident that the day's low fell neatly on .236 fib. The first target is T1 = .382 fib or 324.64. The second target T2 = .5 fib or 326.23 which approximately coincides with the 20 day MA and the October/December low trendline. Since the previous two day's moves have been abrupt and drastic, it is likely a move in the positive direction will be similar in magnitude. Stop loss is placed on today's low.
