A Bearish Caution
- Posted by TheArmoTrader
- on October 9th, 2012
The market has no doubt been strong over the past few months. However, a recent development has me worried, at least short term about the market’s strength. I still think on the longer-term charts, the $SPY looks solid/bullish, however, when looking at the daily, there’s two things I don’t like.
For one, we put in a (for now) lower high on Friday October 5 (Jobs day). We gaped up but the gap was met with sellers. This has happened in the past twice, in which a pullback did not take out the previous high (which was later met with a sell-off). I’m not saying this will happen again, but it is something to keep an eye on.
The second thing that I think is a bearish caution is the face that we are breaking below the uptrend channel I have drawn. I’ve been watching this channel for the past 4-5 months and we have yet to violate it on the downside on the weekly time-frame. It will be important to see where we close on Friday.
Other things I will be watching is for a close above the $143 level and the 50 day SMA.
$SPY - SPDR S&P 500 Daily Chart
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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