• 2 days The New World Tax Order
  • 3 days Is Crypto Finally Ready To Pay The Piper?
  • 4 days Is It Time To Buy The Global Gaming Market Dip?
  • 7 days Even The Mafia Has A Millennial Problem
  • 9 days Zuckerberg Loses Billions in Social Media Outage
  • 10 days ‘Pandora Papers’ Leak Reveals More Financial Crime
  • 11 days US Retail Has A Major Supply Chain Problem
  • 14 days China Has Set Out To Crush Crypto...Again
  • 15 days Top Performing Cannabis Stocks of the Year
  • 16 days Millennials Could Power A 20-Year Bull Stock Market
  • 22 days The Million-Dollar Question: Will China Bail Out Evergrande?
  • 23 days 3 Restaurant Stocks In Full Recovery Mode
  • 23 days Bitcoin Is Driven By Testosterone
  • 28 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 29 days How To Invest In The Cybersecurity Boom
  • 31 days Investors Are Patient With Unprofitable Giants
  • 33 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 35 days 5 Stocks To Keep A Close Eye On This Year
  • 36 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 37 days Central America Is Ready For The Bitcoin Hustle
  1. Home
  2. Markets
  3. Other

SPY: Bull Trap Remains

Figure 1 is a weekly chart of the S&P500 Depository Receipts (symbol: SPY).

Figure 1. SPY/ weekly
SPY weekly chart
Larger Image

Focus on the gray oval. The QE3 announcement week resulted in a break out, but it appears that this breakout will turn into a bull trap. The failure of price to hold above the rising trendline should be concerning to the bulls. Failed breakouts often lead to strong moves in the opposite direction. Resistance is at the key pivot point of 146.34, and support is the low of the negative divergence bar (pink labeled price bars). A weekly close below this low at 142.95 would likely confirm the double top.

This is a bull trap until proven otherwise.

 

Back to homepage

Leave a comment

Leave a comment