SPY Charts 5/14 Broken Support

Its is never fun to be indecisive about what is going to happen when you are trading and especially about the market.  That is where we found our selves last week guessing is it just a normal pullback or is it something else.  We had been probing support at $136, that broke then as we traded to a swing low of $134.49 last week we might be certain that could be support.  Today we closed on the SPY chart at $134.

A lot of us might say we found support, I believe that is temporary and we are getting into a pattern that is setting up to see more down days for the next couple months more likely than not the bulls will stage a bull rally maybe even this week.  If that fails and I think that would at around $137.50 the bears will continue to pile on selling pressure.

SPY Chart 5/14

The news is not good from Europe . A lot of instability in key governments are starting to offset some of the progress made in Greece, and Spain.  Now France has a new president and he seems to be a little more anti austerity than his predecessor.  As long as Europe continues on this path our markets will continue to sell, sell, sell!

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Disclaimer: This article is intended to be informative and should not be construed as personalized advice as it does not take into account your specific situation or objectives