The SPDR S&P 500 ETF Is Sitting Right Under The Creek (SPY)

The SPDR S&P 500 ETF (NYSE:SPY) looks like it is getting ready to ‘jump the creek’ so to speak as it is sitting right under the all important swing trading resistance line.  The MACD histogram is printing a bearish triple M which is as of today unconfirmed.  If we close below today’s low tomorrow then it would get confirmation.

I suspect that we are going to jump the creek pretty soon, but I have not figured out whether or not we will pull back from this resistance line.  Perhaps we will do a minor pull back from the recent 3 day range and then fairly quickly gain ground again for a break out type move.  This could end up looking somewhat similar to that which occurred in the gold price over the last 10 trading days.

This is now the third time up at these levels and often one will see a successful breakout on the third attempt.  A minor pull back would probably bring in new short positions, but then a quick reversal would cause quick short covering and new buying which could fuel a significant breakout.

It is pretty clear that the most recent 3 trading days have been a pause in the previous trend which was obviously up.  Whether or not there is a brief shakeout here should be known by the end of this week.

Written By Tom From Best Online Trades

BestOnlineTrades covers many different aspects of trading, from commodities to stocks, from indices to ETF’s.

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