themarketzone

Is being squeezed inside a Triangle between SMAs - Who will win?

AMEX:SPY   SPDR S&P 500 ETF
$SPY bulls managed to push the price to close above its 200 SMA line again. However, the price did close below the 208$ structure zone (now resistance) and depending on the opening, I see two scenarios here:

1. Bearish open - A close below the 200 SMA line could a breakdown of the Triangle pattern and a massive sell off in $SPY.

2. Bullish open - The price will gap above 208$ and push higher towards the major resistance near 210$, there it'll meet two daily SMA lines along with a strong structure resistance.

$SPY could be squeezed between the 3 SMA lines, inside the triangle till next FOMC meeting on September. The Triangle's breakdown/breakout could be the signal for future price direction.

This analysis is part of this week's Weekly Markets Analysis newsletters - http://goo.gl/AGTYS1

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Tomer J,
The Market Zone - You trading Edge
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