They chose to shake the tree a little bit ahead of Friday’s much-anticipated European summit. Look below and I shared a Daily and 60-minute chart of the SPY so you can map out support levels to buy and measure the pull back.
We broke a micro ascending channel today that usually leads to a bit of downside probing. You can trade against today’s low of $124.97, and it would be very impressive for the market if that level holds. Active traders like myself are testing long vs. that level intraday.
A close under that level and we look at two other bullish constructive spots. Support around $124-124.30, which is the low end of the recent upper level. Next support is $123.22, the start of the gap from 11/30. Bigger support is if they get in the gap- I think in order for momentum to stay intact, $122-122.50 should be an area for bulls to defend.
Disclosures: Scott Redler is long SPY, OIH, XLF, NFLX, SINA, POT, LVS
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