Yesterday, the S&P 500 gained almost 100 basis points in value, partially placating long traders and investors from anxiety in the ongoing downtrend. Now is not the time to complacent. Today's upswing occurred on significantly lighter volume relative to the downdraft volume levels. Additionally, the market closed at the mid point of the trading range, indicating indecision by traders. Here is the chart of the SPY or the S&P 500 Spider, a proxy for the S&P 500 index.
The above is occurring as money flow and A/D figures are rolling over and the momentum statistics (primarily the MACD) have turned negative. All in, this price/volume dynamic and other technical figures suggests that the S&P 500 is headed for lower price, potentially trading into the range between $148 and $151 on the SPY. Before this target is achieved however, I think it is likely that the S&P 500 will move into a range between $1,600 and $1,610, as operators pull others in an attempt to get out at better pricing, before we see the flush in equities.
The above is occurring as money flow and A/D figures are rolling over and the momentum statistics (primarily the MACD) have turned negative. All in, this price/volume dynamic and other technical figures suggests that the S&P 500 is headed for lower price, potentially trading into the range between $148 and $151 on the SPY. Before this target is achieved however, I think it is likely that the S&P 500 will move into a range between $1,600 and $1,610, as operators pull others in an attempt to get out at better pricing, before we see the flush in equities.
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