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themarketzone
Nov 15, 2015 2:37 PM

Price below important support zone - Bearish signal  Short

SPDR S&P 500 ETF TRUSTArca

Description

SPY's Gartley pattern mentioned in my previous analysis finally was triggered last week as investors were disappointed by Draghi's and Yellen's appearances.
The price broke below the major support zone 204-206$ and closed below the 50 weeks MA again.
The nearest support zone is 198-200$:
1. Structure zone
2. Uptrend line (trend line 2)
3. Psychological zone

Assuming that the markets will have bearish reaction to Friday's terror attack, SPY may hit this zone already on Monday's open.
The important signal is the breakdown of 204-206$. If SPY will recover from Monday's open, 204-206$ will become the level to try and sell SPY again.

Tomer, The MarketZone
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