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     Conquas Side Hero Username: Conquas Post Number: 4482 Registered: 11-2011 Posted From: 99.82.251.78 Rating: N/A |
S&P 500 SPDR (ARCA:SPY) put in a high for the week on Monday, July 30 at $139.94, before declining to $135.58 on August 2. On August 3, strong early buying eclipsed the weekly high, pushing the index to its highest level in almost three months. Throughout June and July the index has been moving past prior short-term price peaks, and then quickly retreating, before moving higher once again to make another incremental high. If this pattern holds the index could experience some profit taking early next week. The proximity to major resistance and the 52-week high at $142.21 could attract buying though. Strong resistance is expected between $140 and the 52-week high, but such a level can often act like a magnet - the bulls buy in anticipation of a new high, forcing the bears to cover. The uptrend through June and July remains intact, and is only broken if the index declines below $135. Longer-term the current price is still below the April and May price peaks, indicating a longer-term downtrend may be under way. The possibility of a double top can't be ruled out either, especially if volume continues to be low as the index approaches the 52-week high. all opinions expressed here are mine.. |
