Thursday, July 12, 2012 9:33:15 AM
SPY_60 by Art Hill
Meanwhile, back at the ranch, the US economy and earnings are dominating the trading landscape. Today, we will get an employment preview with jobless claims. The S&P 500 ETF (SPY) and the Russell 2000 ETF (IWM) are trading at potential support levels, which could mark the make-or-break point for the medium-term uptrends. There are two trends visible on the SPY chart. First, the rising wedge marks a six-week uptrend. Second, the falling channel marks a five-day downtrend. Notice that this downtrend retraced 61.80% and returned to broken resistance from last week’s high (133.4). Also notice that the lower trendline of the rising wedge marks support here. A successful hold and break above 135.4 would reverse this five-day downtrend, but a support break would extend the downtrend and increase the chances of a medium-term trend reversal. RSI is battling support at 40 (medium-term trend) and .60 marks short-term momentum resistance for the 5-period EMA of StochRSI.
Meanwhile, back at the ranch, the US economy and earnings are dominating the trading landscape. Today, we will get an employment preview with jobless claims. The S&P 500 ETF (SPY) and the Russell 2000 ETF (IWM) are trading at potential support levels, which could mark the make-or-break point for the medium-term uptrends. There are two trends visible on the SPY chart. First, the rising wedge marks a six-week uptrend. Second, the falling channel marks a five-day downtrend. Notice that this downtrend retraced 61.80% and returned to broken resistance from last week’s high (133.4). Also notice that the lower trendline of the rising wedge marks support here. A successful hold and break above 135.4 would reverse this five-day downtrend, but a support break would extend the downtrend and increase the chances of a medium-term trend reversal. RSI is battling support at 40 (medium-term trend) and .60 marks short-term momentum resistance for the 5-period EMA of StochRSI.
CHARTS: TREND AND MOMENTUM
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