Fuinhaz $SPY read for June 21 2013

$SPY went ex divident today, but it is clear that we bounced off the 159.40 (give or take). The reason I said we bounced off that level and not 159 is because we ended the day with 159.40.

My point is simple, when we get to a support or resistance level, one have to pay attention since what we got is a level where the price will fluctuate around. It does not mean (at least most of the time) that we will hit that level and immediatelly bounce off or drop. But is nice to have a reference point.

Thatis why when I am timing the $SPY, I like to see the level get tested, if I am lucky, that level will be broken up or down, and on it’s way back, and with a visible 20ma or 9ema acting as support (if you are long), or resistance (when you are short), and only at that point I will take a trade.

In trading we rely on the moving averages to help us visualize our setups, and the Fibonacci levels in my case, help me to get the best out of a trade.

As I mentioned on the 1st paragraph, today the $SPY is going ex-divident, so I will have to re-do my lines to match the divident. According to my calculations, the dividend was .84 cents.

I will not make any changes to my numbers until I see the open, where I will re-draw my Fibonacci Levels, and then come in with another post to try to give you guys the best possible target long or short.

$SPY 1st support is 159.16, 2nd support 156.45 and 3rd is 154.65.

$SPY 1st target is 160.00 and 2nd is 160.65, 3rd is 161.17, and 4th just for fun is 162.45

Trade what you see, not what you think..