Shares of the ETF SPDR S&P 500 Trust (SPY) fell decisively below a critical support level on Tuesday, October 23rd.
Back on May 19th, 2008 SPY closed at a bear market rally high. That high has been surpassed three times in the past five weeks by SPY but today's decline was a decisive close below. At the writing of this report SPY was trading at $141.40, down $2.00 a share.
This breakdown in the SPY follows a similar breakdown in the Nasdaq 100 Powershares Trust ETF (QQQ) that occurred last week.
We are always hesitant to enter short positions and this time is no exception. When the major indexes are near their highs, selling can reverse in a hear beat and stop out your trade.
We are looking at another support level, at $140 a share, as a potential trigger for a short trade. A sell stop near $144 would offer a low risk trade and potential for a quick decline to at least $135 a share is the goal.
Disclosure: Author does not have a position in SPDR S&P 500 Trust
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SPDR S&P 500 Breaks Below Critical Support
Published 10/24/2012, 01:32 AM
Updated 07/09/2023, 06:31 AM
SPDR S&P 500 Breaks Below Critical Support
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