Commodity Chart Of The Day: S&P

| About: SPDR S&P (SPY)

Commodity Chart Of The Day

Daily S&P

(click image to enlarge)Click to enlarge

Stocks continue to remain near their 2012 highs, but an interesting pattern is developing that I wanted to point out. In the chart above, you can see the three red arrows -- it appears a triple top to me. I am waiting for confirmation, which would be a breakdown below the short term MAs identified by the red and light blue lines. As one can see, we tested the trend line last week that has held since June.

I am expecting a trade lower in the coming weeks. Investors should be using a trade at these levels to lighten up on long stand bullish positions, in my opinion. Aggressive traders could be scaling into bearish trade. On this contract, I suggest using the Fibonacci levels as your targets on a move lower. My first target would be a 38.2% Fibonacci retracement, which represents a 60-point deprecation from current levels.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.