Bulls are fighting to keep that gate closed
Since the end of 2014, the $SPY has been trading in a range between 200$ and 208$ (With a Yellen spike to 212$)
The bulls are really fighting over the 198$-200$ zone while the bears are getting more and more aggressive trying to push the price below it and breach the "Bulls fort's gate".
The reason this gate is so important is because despite all the selling action we saw during January, $SPY hasn't made a lower low yet (only lower highs). A lower low could be the signal that the rest of the bears, who's been sitting aside watching so far, are looking for to start and pound the markets with heavier selling action.
In case of a breakdown, pay close attention to the 200 SMA line, which may be the last line of defense for the bulls. We've seen it breached only once (last October) and we all remember how the Fed sent Bullard to save the day.
We are in a very interesting war zone between bulls and bear right now. It may determine how this trading year will end.
The bulls are really fighting over the 198$-200$ zone while the bears are getting more and more aggressive trying to push the price below it and breach the "Bulls fort's gate".
The reason this gate is so important is because despite all the selling action we saw during January, $SPY hasn't made a lower low yet (only lower highs). A lower low could be the signal that the rest of the bears, who's been sitting aside watching so far, are looking for to start and pound the markets with heavier selling action.
In case of a breakdown, pay close attention to the 200 SMA line, which may be the last line of defense for the bulls. We've seen it breached only once (last October) and we all remember how the Fed sent Bullard to save the day.
We are in a very interesting war zone between bulls and bear right now. It may determine how this trading year will end.