SPY is looking to test the low of the February dump this week, printing an intraday low today of 259.85. We have three supports in this range from the beginning of the year:
259.05 from May;
254.67 from April; and
252.92 from February, the most important level to hold
We are once again oversold on the daily chart, and the bullish divergence on the RSI and MACD on the daily chart is something I'm watching.
On the 4hr chart we can see a clear downtrend pattern of lower highs and lower lows. Personally I' m not looking to catch a falling knife in any stock when the overall market is showing such incredible weakness. Regular readers know I have not held any stock positions for a couple of weeks, and I am in no rush to purchase anything. I am waiting for the stock market to form a new uptrend on the 4hr chart at a minimum before I will consider purchasing any position in any company.
We did see a significant amount of bull volume near the end of the day. This is something I am keeping an eye on but the bulls remain in complete control of every timeframe and I am not giving the bulls any benefit of the doubt.
Key levels to watch for trend change/continuation
Support: 259.86
Resistance: 270.25
_____
For anybody looking at any individual stock it is imperative to keep an eye on the overall market. The correlation of every individual name and sector to the market is very real and the market has been showing significant weakness over the past four weeks.
259.05 from May;
254.67 from April; and
252.92 from February, the most important level to hold
We are once again oversold on the daily chart, and the bullish divergence on the RSI and MACD on the daily chart is something I'm watching.
On the 4hr chart we can see a clear downtrend pattern of lower highs and lower lows. Personally I' m not looking to catch a falling knife in any stock when the overall market is showing such incredible weakness. Regular readers know I have not held any stock positions for a couple of weeks, and I am in no rush to purchase anything. I am waiting for the stock market to form a new uptrend on the 4hr chart at a minimum before I will consider purchasing any position in any company.
We did see a significant amount of bull volume near the end of the day. This is something I am keeping an eye on but the bulls remain in complete control of every timeframe and I am not giving the bulls any benefit of the doubt.
Key levels to watch for trend change/continuation
Support: 259.86
Resistance: 270.25
_____
For anybody looking at any individual stock it is imperative to keep an eye on the overall market. The correlation of every individual name and sector to the market is very real and the market has been showing significant weakness over the past four weeks.