Breakout Attempt (Nearly) Foiled

Published 05/30/2012, 01:53 AM
Updated 07/09/2023, 06:31 AM

The pattern of the morning pop followed by the afternoon fade remains in tact, but as long as we have higher lows and highs…. SPY $132.75 is holding for now with resistance about a dollar overhead.

SPDR S&P 500
Strong Resistance

Volume was light but the market ignored poor housing report, weak consumer sentiment, and a Spanish debt downgrade to finish near the highs. This is the fifth positive day of the last six for the S&P 500, but the technical picture remains problematic. While we are getting a bit overbought, we are hitting strong resistance at the 134 to 135 area on the SPY which many consider a crucial area for regaining the uptrend.

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