Fuinhaz $SPY read for June 14 2013

So what was the real reason for the bounce off the 161.30 level in the $SPY. For starters 161.35 is the $SPY’s 50ma, so normally it was tested and held. Second is the $NYMO (McClellan Oscillator) that from time to time I like to mention on my $SPY reads.

The chart below show that the $NYMO went under the oversold territory, and as soon as the $SPY touched the 50ma, everything lined up, and we had a strong solid bounce.

So does that mean we are going to make new highs?

Well yes and no. Yes the $SPY did finished ready for another break out, very close to the 164.50 level, and the market is oversold.

No because I still believe that the 159.40 level needs to be tested in order for us to have a much powerfull rally into new highs, but I think that now it will happen in a way that it will not come back to new highs, but only be some support, where a bounce will come and test the 50ma as resistance, and then drop further.

Listen, I had people come to me and say. Fuinhaz, you never give the right direction. Feels like you are protecting yourself all the time.

To those I say, it is hard to predict the right direction. That I agree, but one cannot say that I do not prepare both sides well before anything happens. Being bearish or bullish is an option, being a trade is take all the information you can and use it to your benefit.

Here are the Numbers.

$SPY 1st support is 163.38, 2nd support 161.84 and 3rd is 159.84.

$SPY 1st target is 164.50 and 2nd is 165.56, 3rd is 166.91, and 4th just for fun is 169.07.

Trade what you see, not what you think