The Sentiment
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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5 thoughts on “S&P 500 (SPY): 4 Important Price-Levels 2 Watch”
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Hi Kay,
I’ve read that the SPY chart seems to be putting in a bear flag on the daily – (it sure looks like one!) – and that the chart has not quite bottomed out just yet. Seems as though the more the 100 DMA is tested, the more it is likely to be broken, consistent with the idea that the bottoming out has not yet happened. We may test the gap support as you mentioned – do you think it will happen before the end of September? The weekly chart for SPY looks short term bearish as well – notice the MACD has crossed bearish. Thoughts?
keizer_soze Hey Keizer,
Hmmm, its tough to say the gap support will be tested before the September because with this sluggishness of the market, who knows how long it will just grind like this between 215 & 212. Yes, I do see the weekly-MACD insinuating selling pressure in the intermediate term, but also staying above the weekly-20EMA after throwing inverted hammer (weekly chart) last week. Currently, on the daily, with 10/20/50 EMAs all curling down, so the price will continue to be under stress below $215.50. So i mean ultimately, either 100DMA breaks to the downside or 215 resistance breaks to the upside. I am planning on posting The Market Update video tonight, will talk more about this on the video.
2kaykim keizer_soze Based on today’s price reaction to the FOMC rate decision, as well as breaking above $215 recent resistance (according to your post above), has the direction resolved to go to 218 gap resistance? Today’s close was above most fast moving averages, including the 5- , 8- , 10- day EMAs, as well as the 50 day EMA (although not the 50 day simple MA). It was within shouting distance to the 20 simple DMA as well. Has the chart bottomed out?
keizer_soze 2kaykim Good bullish action today closing above the 215 recent resistance. Yes, if we are able to stay above the 215-level tomorrow, next target will be 218 gap-resistance.