$SPY gapping higher, even though China took a 5% drop during the night and miraculously came back to almost break even.

For a few hours China was in a bear market. For those who don’t know a bear market is classified once an index drops over 20% from it’s highs.

I am not surprised of the gap up, but I want to point out that we are just a few cents above the 100ma, that somewhat became a nice resistance yesterday. The current 100ma is now sitting at 157.97. As I write this the $SPY is at 157.90.

So yes it looks like a good day to be long, until the inevitable happens, and we don’t cross that 100ma with enough volume to give bulls the extra confidence to try and regain the control of this market.

$SPY 1st support is 157.50, 2nd support 156.45 and 3rd is 154.65.

$SPY 1st target is 158.67 and 2nd is 159.58, 3rd is 160.48, and 4th just for fun is 161.70

Trade what you see, not what you think.

 

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