$SPY opening lower as we may have reached a short term top on the $SPY like I explained yesterday. My August 21st Morning update, was the key to understand why we sold off so hard yesterday as I briefly describe over here. “$SPY opened strong, and kept going until it reached it’s intra-day R3 @ 143.04 and change. At that same time, $IWM also hit it’s R3 @ 82.46, and everything pulled back. Currently the $IWM bounced off on R3, but I don’t think it will last too long.
In any day of the past 2 weeks, the market has reached R3, and when it did (sometime during the day) it dropped hard. From previous instances, when market pop to R3 before 11am, it has sold . I just wondering if this time the market will do the same, since there are a lot of people still buying any dips they see.“
Today’s data showed that U.S. home mortgages tumbled last week, with demand for refinancing drying up as mortgage rates jumped to their highest level since late June. We also had news coming from Europe, as European shares fell on Wednesday, led by cyclical stocks on growth concerns fuelled by weak export data from Japan.
And now the almost famous $SPY numbers.
$SPY 1st support is 141.12, 2nd support 140.90, and 3rd is 140.65.
$SPY 1st target is 141.56 , 2nd is 142.26 3rd is 142.71, and 4th one just for fun is 143.55.
Trade what you see not what you think.
