ahhh… good old murphy’s law. not even one minute after finally sending the post about the power being out, it comes back on. just as well, it’s a little easier to annotate and post charts using my desktop pc vs. my laptop and i wanted to share this one:
this is the updated 60 minute SPY chart with the same support and resistance levels shown in the prior 60 min charts. although i continue to favor more downside and a resumption of the short-term downtrend and quite likely, the beginning of a new intermediate downtrend, i wanted to share a few levels for those with a more bullish outlook. the pink lines would be objective long entries, IMO, starting with the top of that former resistance, now support zone and down to the bottom of that zone (although i favor a bounce off the top in order to keep the bullish scenario intact). of course there are quite a few support levels below, including that horizontal line marked “support” and even a little below that at the 137.65ish area. however, i think that as prices fall below the top area that i have marked for a bounce, the odds start rising sharply that the selling will accelerate and the key 136 support area will give way and open the door to a much larger sell-off.
for now, one thing at a time and that is to watch how prices act as/if they test the yellow support zone. again, for those looking to buy the dips, i think a long entry around that level with a stop below the zone or even the next support level would be objective. again, i’m still more apt to short the rips than buy the dips but this market can still go either way from here so i figured that i point these levels out. of course there’s AAPL too, which turned down hard off my R2 level from last week and that could prove to be a thorn in the bulls’ side but as of now, it’s too early to say that the post earnings gap weakness is anything more than the stock digesting that large one-day gain. AAPL chart later.