Wednesday, March 2, 2016

Stock Are Nearing Overhead Resistance - Possible Shorting Point Upcoming

As I have outlined in some previous posts, SPY seemed likely to rally into the 199-204 zone as overhead resistance up from the support zone around 185.  SPY is currently just getting close to that zone which includes multiple unfilled gap downs.

The weekly stochastics is still just perking up from a pretty oversold condition, so the current rally could have some more time to go.  However price has already regained the 50 day moving average on SPY and the 200 day moving average is currently sitting at about 202.50 and likely falling in coming days.

So the program trading systems may kick into selling mode as price moves up into the unfilled gaps and longer term moving averages are tested from the underside.

I will be watching real money sentiment and intermediate term divergences very closely in coming days and weeks to help determine the possibility of continued market strength, as well as profitable shorting or put option speculation points.


1 comment:

  1. Today's total put/call ratio was the lowest since December 16th and Oct 28th, both as rallies or bounces in the market were maturing. So be warned here, that most of the upside is likely complete for the next few weeks, even if the market moves higher. I would anticipate some further highs for the rally but the directional component of the rally is probably mostly over in my estimation.