140.920 that is the level to watch on SPY. A sustained move above this level and the market could rally to the March highs. But this level has been strong resistance with it capping any rally attempt over the last week. This ceiling has been the top of the boring range for the market over the last couple of days with 139.79 as the bottom. Till these levels break the market will remain boring. Bond too are at resistance levels and have remained in a range.
10 Year is hitting resistance at 16.82 and the 30 year at 27.57. These are the same levels yields were at July when the market dipped back to 132.60. Yields at this levels allows for some room for bonds to rally if the market falls. This is a big resistance level and if bonds were to break through it would send yields much higher and bonds much lower.
What does this all mean, it means the market is trapped in a no mans zone. If that market can breakout and get above 140.92 and bring yields back above the June/July resistance rally is sustainable. If it fails at these resistance levels there is the potential to see the market move lower. It should be noted that the market has been pushed up to these levels with anemic volume so whichever side volume joins could be the winning side of the new short-term trend. One thing to note is The Piker Signal is showing some negative divergence and is pointing to a move lower based on yesterday’s price action.