S&P 500 (SPY) Finally Pulls Back To Important Support Target

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October 26, 2017 6:17am NYSE:SPY

From Corey Rosenbloom: Surprisingly, the market can actually trade lower! Wednesday saw a successful retracement swing — finally — toward the first target at the rising 20 day EMA.

What’s the level and what’s the play from here?

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In an uptrend, price typically swings up to a new high (toward the upper Bollinger Band®) and then swings down to form a higher low as buyers step in (and bounce the market) up away from rising trendlines or moving averages.

This has been the case through most of 2017 except for October when price defied gravity in an extended upswing without a pullback.

TODAY we’re finally seeing that pullback to the safety zone and rising 20 day EMA target.

What’s the plan from here?

Note the Green and Red Price Pathways for planning your next trade(s) within the uptrend.

A support bounce here just keeps us bullish in the impossibly rising bull market while a breakdown beneath t0day’s low target near 2,540 suggests a steeper pullback (look at the other examples in 2017) toward the rising 50 day EMA and lower Bollinger Band® targets overlapping 2,520.

Stay safe!

The SPDR S&P 500 ETF Trust (SPY) rose $0.24 (+0.09%) in premarket trading Thursday. Year-to-date, SPY has gained 15.26%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 124 ETFs in the Large Cap Blend ETFs category.

This article is brought to you courtesy of AfraidToTrade.com.

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