S&P 500 Chart Analysis Ahead of FOMC/QE3 (SPY)

For Thursday’s chart analysis, Phil Erlanger said, “Wednesday we are above resistance at $144.33 but were close to breaking back under it. He noted, ‘If we hold, then we would move to a long bias for today. If we fail, then get aggressive on the short side below $144.33 and use trigger indicators to lock in profits.’ The SPY closed at $144.39. Today we have just moved above support on SPY at $144.28. Watch to see if we hold support. My prediction is range bound until the FOMC decision then REALLY pay attention to the value lines if we get some volatility. Remember to use a break above resistance to get more aggressive long and a break of support to get more aggressive on the short side.”

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September 13, 2012