S&P 500 Technical Analysis for 1-29-10
The SPY is struggling to hold above the trendline, the 100 day moving average and support. These three technical areas of interest all come together between 108.00 and 108.50. So far, the sellers remain in control as the declining 5 day moving average acted as resistance. As long as the SPY remains below the declining 5 DMA, all longs should be treated as daytrades only. The question now becomes whether the gap from mid-November at 107.40 will be “closed” before the market can regain its footing. There is no point buying at “potential” support levels, wait for the buyers to take control before putting your money at risk. Risk management is always job number one.