S&P testing recent support

There are a couple of different ways to read the S&P chart as I see it.  They look a little different to me depending whether I use the ES (Futures) or SPY (ETF) chart.

On the Futures chart, I use the intra-day low from 10/4/11 as my starting point and get a pretty clear rising (bearish) wedge, from which we broke down on 4/5/12.  We then consolidated in a range.  Last week it broke out to the upside of that range, and are now testing the old channel resistance as support.

On the SPY chart, I’m less inclined to use the opening price on 10/4, preferring instead to use the closing price from 10/3 (I’m not sure why) which makes for a much wider wedge.  After popping briefly to the downside of support on 4/23-24, SPY rallied to close the week within the trendline and has stayed there since.

So, despite taking a couple different charting tacts, it looks like the 1390ish area is important support for the S&P.  At least that’s how I see it.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: