Friday’s trading session did move several of the 15 minute SPY charts indicators back off sell signal although by a marginal amount. My current focus is the longer time frames, specifically the 60 minute & daily SPY charts. On this 60 minute chart, I’m watching the 169.90ish resistance level as well as the downtrend lines on the MACD & RSI. A break above these levels, which would likely come in close proximity if all three occur, would official end the near-term downtrend.
If we were to take out that 169.90ish resistance level with the market making a new high, that would also foil or at least postpone confirmation of the negative divergences that have been building on the daily MACD & RSI and are currently very close to confirming via a bearish crossover on the MACD & any move lower on the RSI. It should be noted as well that the $NDX/QQQ backfilled the July 19th gap on Friday and has so far found resistance at that level as it is indicated to open lower today. Therefore, the first few trading sessions of this week have the potential to make or break the charts. SPY daily chart below.
