SPY- Approaching POTENTIAL Resistance


In addition to the 144.35-144.50 level being prior important support, which has the potential to become resistance, that area is also the location of daily R2 and the declining 5 day MA. By themselves, these technical observations can be a reason for buyers to become less aggressive and for sellers to start offering out stock, but when we have a “confluence” of these technical signals it makes the odds higher that the market will at least slow down in this area. This is not a call to sell, do not misinterpret. We never know where resistance is in the market until AFTER THE FACT, it is possible for the market to blast past this level. This post is only meant to make you aware of a potential scenario. The market trend is solidly higher this morning and I am not going to fight momentum. Just be sure to tighten your stops and become more selective in any new entries in an area where the supply/ demand equation has the potential to turn.