Resistance Is Building. A Trading Range For The Remainder Of The Year Is Likely!
The recent breakout to new highs for 2009 has been minimal. The market has challenged SPY 111.50 three times without success. Profit-taking sets in quickly each time and buyers aren't aggressive enough to overpower profit takers. A formidable resistance level is forming. In today's chart you can see that the magnitude of each breakout is decreasing. After each new high, the market probes for resistance. A key reversal marks resistance and after a retest a few days later, the market declines. This is a very tradable pattern and I believe we are due for a few days of weakness. This morning, …
November 24, 2009
• Posted in: Options
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