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SPY’s Double Top

Published 05/02/2013, 08:08 AM
Updated 07/09/2023, 06:31 AM

SPY failed at its resistance at the swing-high 159.72 on Tuesday, this started the toward trend, which continued yesterday. The selling sent SPY below short-term support at 158.86 and it closed near its lows of the day. Yesterday’s sell off creates a double top pattern, which is bearish and potentially could send SPY back down toward the market lows. SPY should test its major support at 156.90, which will be important. If it can stay there, then SPY is just pulling back before another attempt at a rally, which if it fails, SPY moves lower with a real test coming at the March lows. All this is potentially negated if SPY breaks back above 158.86 or the swing high at 159.72.
SPDRs S&P 500 Trust
The Piker Indicator has not flashed an overbought but has been so close that combined with a clean resistance level it has been easy to sell into the last few days. It dropped below to a bearish level as well supporting the double top pattern.
SPY: Close To Overbought

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