Stocks are trying to hold on to gains this morning on the heels of a stronger ISM and strong ADP payrolls report. Right now seems to be a time where charts are running the trading pattern rather than the economic news and it is important to look to see what the charts are telling you ahead of the first of the presidential debates tonight. We are analyzing the SPDR S&P 500 (NYSEMKT: SPY) as it is the most liquid of all ETFs.
For Wednesday’s chart analysis, Phil Erlanger said,
Tuesday futures were very strong at the start of the session and it looked like a strong open before reality set in. However, SPY broke pivot of $144.68 early on and headed south. Clearly, stocks that make up SPY are not living up to their potential and we would be a cautious buyer as we are in the worst of the seasonal weakness that lasts until October 10th. SPY closed at $144.47 as it rallied in the last hour to close $0.21 below pivot. Today we find that SPY right on pivot at $144.49. Watch to see which way it breaks to go long or short.
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OCTOBER 3, 2012