SPY days may be numbered

SPY has been trending down since early September and has not been able to recover

- formation of a bearish pennant
+ October 6th high was at bearish pennant resistance
+ RSI has not really been over over 50 since September 10th
+ Slow Stochastic is showing that a trend reversal is upon the horizon

SPY might try to find support on the trend line - if that is the case SPY is heading for the 200 EMA. FB and AAPL look to fall - if those two stocks fall that would likely be enough to send the SPY down. MSFT recently filled a small gap which could act as a resistance level.

Comment:

Pre - Market stocks are up - I do not believe it will last long. SPY will likely fill gap. From there, I would not be surprised to see a reversal

Comment:

4 hour chart RSI shows that selling of SPY is starting to sell off

- RSI at highest level since September 8th
+ trending down
- Stock gapped up, so it could be looking to fill the gap
+ lower high
- The smaller time frames shows that the Slow Stochastic line has crossed the signal line

With stocks slowly trending down around Noon CT til the end of the day - I would expect October 8th to be a down day. If not, potentially selling off over the weekend