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SPY Technicals:  Resistance Zone Reached ?
 October 6  ​( From Stockcharts, TradingView  )
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The Situation

We just start to realize how deep and violent the correction was on the ​​​US ​
​equity ​market lately. From the peak price on SPY ETF reached on May 20 2015
​at 213.78 ​to ​the low made on August 24 at 182.40, for a ​move of 14.68%.

That was the first serious real correction since October 2014...​

​​In fact, when we broke a Rising Wedge Pattern on August 20 2015 at 205.94​, ​
​game was over on SPY on a short term basis and then ​reached then the panic
​selling level on August 24 at 182.40. ​( See Chart Below - Blue Trendlines )

​​Rebounding from those abyssmal technical levels was quite a statement from Mr Market. But in reality, it started a Technical Continuation Pattern called a Pennant and then a Break Out on September 16.
( See Chart Below - Grey Trendlines )​

​​​​​​​​But the most interesting technical factor to me is that on September 17 we had a Shooting Star Pattern on SPY ETF that may bring a Major Reversal in Trend. Having a Daily close today below the old Pennant Break Out Trendline will confirm in fact that it was a False Break Out on SPY.​
( See Second Chart Below - Top Ellipse )​

We did on September 29 a technical testof the Daily Low of August 25 (186.93 ) and rebouded violently.
It was a double bottom​ and the market rallied and for the first time since August 24, and it did with stronger volume.

​​On October 2, SPY ETF did close above the 20 DMA zone ( Day Moving Average - then at 194.62 ), another strong technical behavior. ( See Second Chart Below - Yellow Trendline )​. On October 5, it did broke a small resistance trendline ( now becomes support ). ( See Second Chart Below - Blue Trendline )​

But the most interesting technical factors is that we tested back on October 5 that Major Resistance Trendline that started back on August 18. ( See Second Chart Below - Red Trendline - Ellipses )​. ​We are now getting into the Resistance zone for SPY ETF and only a Daily Close above will bring another Bull Impulse.



SPY Technicals: Resistance Zone Reached ?   $SPY    #Trading #Emini #investing  #SP500
SPY ETF ( Daily Candles )
Volume ( Bottom Panel  - Blue Area )​​
SPY ETF ( Daily Candles )
Volume ( Bottom Panel - Blue Area )​​