Let’s Get Technical
- Posted by TheArmoTrader
- on October 23rd, 2012
The Market has not done much but chop over the last month. However, as of late, the SPDR S&P 500 ($SPY) has been acting very well technically. In fact, some basic trend-lines have been “dictating” market action. While technical analysis is more of an art than a science, when a trend-line becomes prevalent, then it start becoming more important.
$SPY Daily Chart
As you see below, I have sets of trend-lines drawn. The main one that I have been paying attention to for the last few months has been the blue weekly trend-line. While it looks messy on the daily (cuts through some candles), on the weekly it is very clean. We broke below that earlier this month. However, depending on how you draw your trendlines, we broke through the more “Macro” up trendline today on the gap below.
While all this has been going on, we see a new channel established from the year-to-date high. It is a small, rangy downward channel. And by no suprise, we bounced off it on Monday. It’s going to be interesting to see if we see some momentum follow through on the break of this channel (either to the upside or downside).
Here is a look at the same chart but on the weekly time-frame. A little messy but you get my point. Follow the trendlines.
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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