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Ape1
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I am an independent market analyst. I have years of experience watching, trading, and analyzing the markets. **Disclaimer: I am not a licensed professional. All of my ideas are my personal opinions only. I am not to be held liable for any losses occurred from the basis of my advice.
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Ape
  • SPY Relief Rally Ahead 0 comments
    Feb 26, 2013 3:18 AM | about stocks: SPY

    I have been adamant about the Spy needing a sell off based upon the badly diverging indicators displayed on the daily chart. The SPY has since been under heavy selling pressure, but it is my belief that the bears will let the bulls breathe a little and make a grind up to the 152 level.

    (click to enlarge)First, I would like to point out the positive divergence appearing on the hourly charts. This is most notably displayed on the MACD and RSI. As price made a new low at 149, the technical have failed to confirm this with lower lows. Second, the market is way below its' linear regression line. This is an indicator I like to use for support and resistance levels. If the price remains below its' linear regression line I view it as bearish, and vice-versa. So for now I am expecting a temporary level in the near future in the SPY to about the 152 area. It is in this area I would start looking for short opportunities.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in SPY over the next 72 hours.

    Stocks: SPY
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