Arachnophobia: Fear Of SPDRS (SPY)?
The S&P 500 SPDRs
(
SPY |
Quote |
Chart |
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PowerRating) is
facing key price support as well as a time parameter pointing to a potential
cycle low. The price support zone is a combination of seven price levels of Fibonacci
retracements, extensions and projections. This zone is from 100.97-103.39.
I
also find it interesting that on the time axis of SPY, I have a confluence of five
cycles telling me a low should be formed between June 6 and June 7.
The final
point of interest on this chart is relation to symmetry. The previous “leg” down
was 14 days and 8.7 points. As of today’s close, SPY is down 8.1 points after
13 days. With these factors on the time and price axis of the market coming together,
I would be tightening stops and/or taking profits on short positions. I might
even consider a trade on the long side of SPY if I get a trigger against this
support zone. I’m waiting for a trigger because this trade would be against the
main downtrend. Regardless of the outcome, this is a key decision time for SPY.
