Oh look another Doji! The market chopped around today till the FOMC meetings where it sold off right away because the words QE weren’t announced which allowed SPY to fill the gap left from the June 29th breakout. Eventually the selling stopped and SPY rallied to close green for the day. SPY could have possible completed its downward move off the overbought condition and after hitting resistance a week ago.
Support: Today’s price action shows there is support at the 133.43- 133.38 areas is the area before the June 29th breakout, plus 133.37 is the 50 day ema. There trendline from June appears at this level and depending on how you draw it and the width of the line, SPY could’ve touched it today. Clearly there is some buying support near this level. Below this level is support at 132.86 which is an even bigger support level and buying pressure above this level could also happen. The bears have a challenge of head of them if they want to push the market lower.
Resistance: A bounce is likely from this technical level how far it goes really depends on the selling pressure of the short-term level of 134.40 and more importantly the 134.85 level. A move above 134.85 and the the market could rally to test 136.90. There is a lot pent up selling at that 134.85 so a move above it would cover some stops.
