SPY on the daily timeframe has a daily inside bar and it's second bearish candlestick in a row. Low of the day did hold a long term trendline (blue) from back in January 2016 but also closed below the 200MA (green). So far we're looking at a very weak bounce on the daily and a potential bear flag. The amount of bear volume stands out compared to the bull volume. For details I'm zooming into the hourly chart to better understand what's going on.
Into next week we're watching a tightening hourly equilibrium between 274.97 and 279.30. These are the most important levels going into Monday. If we break bearish out of this range we will be looking down to test the low of the dump 270.36 and if we break bullish we're looking up to for continuation of the daily oversold bounce, with resistance at the top of the bounce so far at 281.15. If we break bullish we will certainly set a lower high on the weekly chart compared to our all time high.
SPY is a weekly inside bar so if we break the hourly equilibrium bearish we do have one more important support before testing our recent lows: 274.30; however that level is not terribly significant to me as I put more weight into the equilibrium break.
Using hourly chart for short term direction over the coming days,
Key short term support: 274.97
Key short term resistance: 279.30
On the break of this hourly pattern I will consider playing 3x bull or bear leveraged ETFs SPXL and SPXS.
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For anybody looking at any individual stock it is imperative to keep an eye on the overall market. The correlation of every individual name and sector to SPY market is very real and the market is showing significant weakness over the past three weeks with warning signs of further potential weakness potential into next week.
Into next week we're watching a tightening hourly equilibrium between 274.97 and 279.30. These are the most important levels going into Monday. If we break bearish out of this range we will be looking down to test the low of the dump 270.36 and if we break bullish we're looking up to for continuation of the daily oversold bounce, with resistance at the top of the bounce so far at 281.15. If we break bullish we will certainly set a lower high on the weekly chart compared to our all time high.
SPY is a weekly inside bar so if we break the hourly equilibrium bearish we do have one more important support before testing our recent lows: 274.30; however that level is not terribly significant to me as I put more weight into the equilibrium break.
Using hourly chart for short term direction over the coming days,
Key short term support: 274.97
Key short term resistance: 279.30
On the break of this hourly pattern I will consider playing 3x bull or bear leveraged ETFs SPXL and SPXS.
_____
For anybody looking at any individual stock it is imperative to keep an eye on the overall market. The correlation of every individual name and sector to SPY market is very real and the market is showing significant weakness over the past three weeks with warning signs of further potential weakness potential into next week.