SPY Charts 5/16 Euro Headwinds

If you have ever been on a flight  and encountered major headwinds they usually end up delaying your arrival on time.  I do not see how the market can make any progress with the headwinds that are coming out of Europe.  It keeps showing up day after day and is intensifying.  Today the news that Greece could leave the Eurozone snapped an 80 + gain on the $DJI the SPY was up as much as half a percent before succumbing to the news from Europe.

Even having U.S. housing starts and industrial production climbing did nothing to dampen the over all markets mood. The SPY charts signaled this coming it is often a behavior and pattern we see develop as negative sentiment enters the market.  When major support is breached on the SPY Chart over the last 3 years it has dropped 3.5% percent.  IF that holds true our current breakdown would put us right at $130 the next support level.



The news seems to be continuing in a negative pattern and tomorrow if jobs numbers come in low in combination with Greece/Europe news the market will sell off.  Again if you are looking to trade right now most people should be looking for bearish set ups.

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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