SPY into resistance at 50 DMA The SPY is an impor
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SPY into resistance at 50 DMA
The SPY is an important ETF to watch because it gives us an overall gauge of the market. It is into a resistance level today, which means that we are likely to see a pause or even a pull back over the next few days.
Yesterday's action, the pull back to the 20 DMA with an intraday pierce was just a shakeout as it turns out. Given the downtrend of the market recently, with the 20 crossing under the 50 DMA and price trading below the 50, I am in caution mode on my long bets. That is another reason I kept it tight on DWA, this market could sell off hard at any moment. When I say sell off hard I mean it could go like flash crash hard, or October 2008 hard, and I'm not going to take any chances.
Nonetheless, the SPY could push through the 50 DMA on light volume. As of now only about 33 million shares of SPY traded and it's an hour away from lunch time. Light volume will have an upside bias.
What I would really like to see in the days to come is a retrace to the 144 area, or even a little higher to 146 so that I can accumulate some shorts.
[IMG]http://i.imgur.com/BVdJV.png[/IMG]
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