John Mylant's  Instablog

SPY Trade Analysis

RSI- the SPY has continued to move down and the RSI confirms that it is in the beginning of a bearish move. We have yet to see any signs of a turn around and this week does not look like it is showing us any signs other than bearish continuation patterns.(click to enlarge)

Bollinger Bands- the SPY is trading at the bottom of the bands and one of two things can happen now. It can bounce off and move up in a peak & valley as it moves down or it can slide down the bands in a steeper descent. This week should show us.

MACD- the latest bottom on the MACD Histogram is showing early signs of a positive divergence. This doe snot mean bullish territory now. It could simply mean a short term move up soon for the peak & valley formation we talked about in the Bollinger Bands. We have yet to see a turn up for the week.

Current Events

Stock index futures fell sharply on Monday, tracking global equity markets lower as a political impasse in Greece heightened concerns about Europe's debt crisis and fears mounted about an economic slowdown in China.

Greece political landscape has been in disarray for a week since an inconclusive election left parliament divided between supporters and opponents of the 130 billion euro ($168.3 billion) EU/IMF bailout, with neither side able to form a government.

Concerns about a slowdown in China have been troubling investors for several months. The decision of the world's second-largest economy on Saturday to cut the amount of cash banks must hold as reserves, normally seen as a pro-growth move, suggested the country may be facing more significant headwinds.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.