Monday, September 14, 2015

Sideways Sloppy Trade in SPY

As somewhat expected in the days preceding a FOMC announcement with potential volatile responses, market action has been muted today.

Click on Chart to Enlarge

The two key levels I see in the short term as market resistance are 196.15 and 198.40.  The 196.15 area is roughly the center of a contracting symmetrical triangle occurring on this 15 minute chart.  The 198.40 level is a harmonic level for the completion of an upwards ABC pattern off last Thursday's low.

Price breaking last Thursday or Friday's low will likely be a bearish trigger I think.

A move above this morning's high, would very likely push price to test the harmonic zone at 198.40, I think.

I still favor the downside as the next significant move here.  Last Wednesday's high is the clear stop point based upon the short term price logic and a classic bearish engulfing candlestick.

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