Rashad
Short

Gearing up for Rocky October?

AMEX:SPY   SPDR S&P 500 ETF
134 1 2
Although today's Redbook showed slowing growth for retail, what I think is setting us up for a rocky October is the potential for a Sept rate rise. Although traders are pricing the probability of a rate increase higher in December than September, considering the markets have rallied for a while now on expectations of rates continuing to stay low, a surprise rate rise, combined with other economic uncertainties in October, could set us up to set a bigger retracement from August highs. Albeit, the probability of a rate rise is low.

On the technical side, we are trading below the 10 Day MA, and on a strong approach to the 100 day MA. Today's high attempted to break the resistance level at $214.63 (76.40%) but failed. The next resistance is at the 100 day MA slightly below $212, then right below is the 50 day MA, this might give us some support, but could break if the fed raises rates. If our support area around $212 gets broken, the next target would be the 200 day MA around $206.00. Momemtum on the MFI             is continuing to trend bearishly, for this reason, I am looking to be short with a take profit at $206 if $212 breaks, or the FED raises rates rates. The proportionate SL for this trade is $220, however I would to trigger a stop loss if the prices rises back above the 10 day MA.
parkercharts
2 months ago
awesome analysis. im generally agreeing with your sentiment, especially because SPY is making lower highs while AAPL had a huge run up - if it dumps off, SPY will definitely follow.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out