We will be discussing the likelihood of a pivot high LIVE this morning and in the trading room. If you are interested in joining us, for a modest $19.99/mo head over to https://theclosingprint.com we will be happy to assist.
The S&P500 SPDR ETF has appreciated +14.35% from the pre-election low. If we view this weakness in futures and a possible pivot, then we should look at our indicator and market internals to confirm.
The key is TICK cumulative in the bottom panel.
The SPY could pullback to Fibonacci 23.6% (229.89) over the next couple of days and still remain in an uptrend. Fibonacci 38.2% seems unlikely, but that would mean SPY pulls back to 225.55.
Blocks overhead start at 236.26, so we know where resistance is for sure.
Thursday marked 10 straight days of accumulation, without a significant pullback. Therefore, its not unusual to assume that we could pivot here.
SPY 60 minute
A couple of things we should note here.
- XLE, XLV, XLU and XLP were green yesterday, while the remaining five sectors closed red or flat. This could be rotation.
- Price action is opening near the lower part of the horizontal channel noted yesterday,
- Price is also below the 9/20ema, so we are bearish until that changes.
Tune it at 9:00 AM for a pre-market show.
Happy Trading – Vinny
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