March 23, 2011
Both the S&P 500 Index (SPX) and its tracking ETF the S&P Deposit Receipts (NYSE: SPY) have slowed their advance from correction lows. Will they again move higher?
The SPY reached its 50-day moving average on Monday, March 21, a level used by many short-term traders to determine trend, and the rally stopped.
On Tuesday March 22 the same level again stopped the advance and resulted in a lower close. SPY 130 is now acting as resistance.
Should SPY 130 be surpassed there is still a huge resistance level at SPY 133.50 which was where the last rally ended on March 3.
A failure to close above resistance at SPY 130 would likely result in a test of the prior correction lows down at SPY 126-125.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in the S&P 500 SPDRs.