Price action was very muted this past week considering we spent most of the week right in the middle of resistance. Where have all the sellers gone? Have they been covering on the way up?
SPY closed just below resistance on Friday but with little selling. This is a really important price zone that keeps failing (see chart) but the good news is that the selling at this level keeps getting less severe at each attempt.
Price action has all the signs to take it up and through this resistance zone. Continue to hold and don’t be surprised to see a week or two of “price adjustment” before breaking up and through.
SPDR’s S&P 500 Trust Series ETF (SPY) daily
Get ready for some buy signals. I have reviewed every chart in the S&P 500 Index. Right now I have about 50 names that made the first cut. I will be trimming the list over the next few days to filter out the weak contenders.
Get your dry powder ready.
I should have the list narrowed down to a manageable size by mid week.
Trade Smart,
Don