Stocks are lower yet again on Wednesday as some investor profit taking and caution is coming in ahead of the onslaught of what is expected to be weak corporate earnings reports. The long and short of it is that this a market dominated by charts ahead of earnings season. 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 saw SPY is again trading pivot to support. When we wrote we noted that, “SPY had yet to break support but it is testing support at $145.26. We would feel better about a long bias if SPY could break above $145.44 its five minute high.” This never happened and the puke ensued as we failed at support and if you when short there you had a nice gain.
Today is another pivot to support day. Watch for the 2:00 time to see how trading goes when FOMC notes are due out. Continue to short breaks of support. Again watch for a move above the 5 minute high.
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OCTOBER 10, 2012