$SPY opening flat after economic reports from Europe that decided to leave its main interest rate at 0.75 percent.  The Bank of England, also left its main interest rate would stay at 0.5 percent and that it would keep its gilt purchases at the 375 billion pounds’ worth bought so far. Over in the US the economic data showed that weekly unemployment aid applications fall to 366,000, indicating steady but modest hiring. Productivity declined at a 2 percent which represents the sharpest drop since the first quarter of 2011 and a larger fall than the 1.3 percent forecast by analysts.

So what do all that represent to the charts?

Well if there is still some fuel in this rally, we need to cross the $SPY 151.47 level with some real volume. Do I want that to happen. Yes, but not right now. The best thing right now is for a 2.5 to 2.5% pullback to happen, that would most likely put the current neutrality of the $NYMO (McClellan Oscillator) into the oversold territory, and when we come back, we just rip into new highs and help create the next biggest bubble ever.

I suggest my readers to stay cool and carefully follow the trend. Don’t fight it. One thing is to have these levels in mind, but it is always better to have real confirmation that the up trend is over.

$SPY 1st support is 150.65, 2nd support 150.11 and 3rd is 149.46.

$SPY 1st target is 151.32, 2nd is 151.83, 3rd is 152.32, and 4th one just for fun is 152.74.

Trade what you see not what you think.

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