SPY 213.28 – Sharp weekly reversal points to a retest of 200 day MA at 205.43
SPY sold off sharply last week after reaching an all-time-high at 219.60 (August 22, 2016). Near term, the weekly downside reversal points lower to unwind the overbought condition. Further weakness from the 213.28 new 8-week low area (September 9, 2016 low) would open the 200 day moving average at 205.43 (1st support) for a retest. Below lies the higher low at 198.65 (June 27, 2016, 2nd support), near the long-term rising from March 2009 low. The is likely to contain the corrective weakness.
However, back above the 219.60 area would signal resumption of the momentum and expose the long-term upside target at 220.82 next.