Wednesday, August 6, 2008 at 10:10AM | Asher Pinto
Markets still shaking off the cobwebs from the Fed reaction. Perhaps, we'll start to get a better picture of the ensuing trend by the end of today. In the meantime, here's the chart. Note changes in some of the important price levels.
So far today prices have been caught within a 0.40-pt rectangle that targets 127.45 or 128.65, depending on direction of breakout. If the breakout is to the downside, note that there are potential support levels at 127.75 and then at 127.10.
Update on Wednesday, August 6, 2008 at 12:26PM by
Asher Pinto
Apologize for the scarcity of updates today; preparing for a meeting.
In any case, the big news of the day so far is that prices have managed to push above the all-important resistance at 128.50, after closing the opening gap. Let's see what the next few hours have in store. Will the breakout prove false? Or will it actually hold?
We're treading (and trading) very lightly. As mentioned in last night's commentary, there are a couple of hurdles that need to be overcome on the daily charts, before we can jump in with both feet.
Update on Wednesday, August 6, 2008 at 01:41PM by
Asher Pinto
Has been trading between 128.25 and 128.70 for the last couple of hours. The height of the consolidation suggests a 0.45-pt move to 127.80 or 129.15, depending upon direction of breakout.
Update on Wednesday, August 6, 2008 at 03:32PM by
Asher Pinto
Prices had managed to break out above 129.15, which was the intraday highs following the first reaction rally in July, a little earlier. It has since slipped back below that level.
« Active Traders: 5-min SPY Chart Trends (8/06/08) »
Markets still shaking off the cobwebs from the Fed reaction. Perhaps, we'll start to get a better picture of the ensuing trend by the end of today. In the meantime, here's the chart. Note changes in some of the important price levels.
So far today prices have been caught within a 0.40-pt rectangle that targets 127.45 or 128.65, depending on direction of breakout. If the breakout is to the downside, note that there are potential support levels at 127.75 and then at 127.10.
Apologize for the scarcity of updates today; preparing for a meeting.
In any case, the big news of the day so far is that prices have managed to push above the all-important resistance at 128.50, after closing the opening gap. Let's see what the next few hours have in store. Will the breakout prove false? Or will it actually hold?
We're treading (and trading) very lightly. As mentioned in last night's commentary, there are a couple of hurdles that need to be overcome on the daily charts, before we can jump in with both feet.
Has been trading between 128.25 and 128.70 for the last couple of hours. The height of the consolidation suggests a 0.45-pt move to 127.80 or 129.15, depending upon direction of breakout.
Prices had managed to break out above 129.15, which was the intraday highs following the first reaction rally in July, a little earlier. It has since slipped back below that level.
Today's closing level is going to be key.