SPY has been hovering above the 212ish “Current Support” level last week while the 215ish-level acting as “Recent Resistance.” Going into this coming week, I think those two levels ($212ish & 215ish) will be very important to watch (as I have explained this on my recent video). However, in a scenario where we break below the “Current Support,” then the next level of potential support is the “Gap-Support” at 209ish. Consequently if the buyers able to break above the “Recent Resistance” at $215ish, then we are moving up to the 218ish-level which is the “Gap-Resistance.”
In any situation (either down or up) these four (4) levels will be acting as strong pivotal level; and we may continue to grind above the level of 212ish so I would keep these levels as your reference point for the next few weeks or longer as long as we are in this vicinity.
Minor term sentiment continues to be bearish (as of today) as I expect the volatility to continue as long as we are below the “Gap-Resistance” level at 218ish. Intermediate term sentiment is bullish as long as we stay above the 208-209ish “Gap-Support” level. So the overall sentiment I see, is that, we are pulling back within an intermediate-term uptrend to cultivate a higher low before moving higher for another all-time-high print.
Let me know your thoughts by leaving me comments/questions below.
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