S&P Chart Looking For Gains

After a big sell-off on Tuesday, stocks have a little bit better earnings reports to digest from the major companies. The markets are so far holding in positive territory and the real question is whether or not those gains can hold. We are analyzing the SPDR S&P 500 (NYSEMKT: SPY) as it is the most liquid and most representative of the broad markets out of all the ETFs which trade.

For Wednesday’s chart analysis, Phil Erlanger said,

Yesterday we noted that, “… we are WAY below support. Bears are in control. We would not dip our toe in the water as a buyer until we can close above the 5 minute high on SPY which is $141.92.” That never happened. However, the 10 minute DMA again worked well as a scalp trade. Today SPY is trading resistance to pivot which is an improvement over the past couple of days. However, if the weakness continues then pivot could be broken at $141.44.

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OCTOBER 24, 2012