Earlier today I gave out the SPY daily resistance level that I saw on the charts at 191. The candle ended up closing just below 191 at 190.30, which is also a gap window from May 22nd.
So far this is a 5% gain off of the recent intraday lows at 181.92 on Oct 14th, or a 3% gain off of the 184.60 support that I officially called out in earlier posts.
I thought that it would take another day to get to the 191 vicinity, but this bounce is showing some legs. We have a decent possibility of fighting through 191, if not just opening above that level of resistance. If 191 falls, then we're probably looking at the 20 day moving average which would be the 193.45 area which would be about a 6% gain off of the recent intraday lows or 5% off of the 184.6 support level.
A 5-6% gain in the matter of several days is a good trade so risk management dictates taking a little off or at least moving stops up to break even. The SPY can keep running, and maybe this was the "correction" for the year but you never know.
Napoleon T. Butic is the owner and CEO of Trout Payment Systems. He spent over a decade in the hedge fund industry and has been utilizing technical analysis to trade his personal account since 2009.
Trout Payment Systems is a Houston based merchant services firmfocused on helping businesses accept credit cards in Houston, and is one of the first firms in the city to help businesses accept BitCoin.