SPY touched all its key levels today opening the morning up, closing the gap above then failing at the key resistance
level near 136.26 the high of the day was 136.23 and failing at the 134.85 support.
Once this level broke the selling surged.
SPY still has not completely closed the gap at 133.43
but looks like it is nearing it. Below this gap strong support is at 132.86
where represents a significant amount of buying support and potentially the uptrend line from June. This area is also where the market has previous consolidated and started breakouts, so the selling could ease off at this level. If SPY gets through this level, 129
is very likely if not lower.
have control of this market at this point and formed another key resistance at 134.85.
This level will need to be defending going forward for the bears
to continue to push the market lower. Above that 136.25
is now a strong resistance level, with 136.90
and the major resistance at 137.86
Bonds Lead this Drop:
It appears as bonds were telling the market something yesterday
after dropping below support at 15.60 Now the Ten Year is at below 1.50% and heading to the lows in June. The real question here is does the market head to its lows in June?
The Dollar Hitting a Ceiling:
Part of the selling was also because of the rallying dollar. Watch 83.67 on the DX if this level breaks it would be a big time breakout
of the dollar. This level has stopped the last couple of advances and is a resistance level that is from 2010. This breakout
would be bullish for the dollar( and potentially bearish
for the market. If DX sells off and breaks 83.09 it potentially is bullish for the market. Another thing not on the chart is the broadening top that is forming on the dollar, there still needs on more connector to make it official.