We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of the SPDR S&P 500 (SPY).
I hope you are having a GREAT week !
The all time high for the SPY is 157.52.The current rally high was made on 02/19/13 and was 153.27.
So the SPY is close to a major resistance area, to say the least.
MarketClub is on a weekly red Trade Triangle which is definitely something to pay close attention to.
Stocks could just move lower from here, or could go up and make another high for this rally, but any new high would come in on a bearish MACD momentum reading.
With the SPY close to an all time high resistance level this is a time to be extremely cautious on the bullish side of stocks.
Like Adam says, the market doesn't ring a bell when a top comes in.
As always I could be wrong, and stocks could just continue sharply higher from here, but right now I think we have to at least look at the possibility that the next major move in the SPY may be to the downside.
There is no doubt that the SPY is a Chart to Watch very closely right now !
Thanks,
Jim Robinson
Profit Trading.com
