SPY Charts 5/22 All Quiet On The Front

Today's market action felt a little lethargic even though the market moved from good positive territory this morning to breaking even for the afternoon.  I was just going through the SPY chart from last year and that Tuesday was a down day.  Today's close on the SPY was above our close from yesterday. 

Again this market is in an oversold condition and we are trying to make some gains this week.  But significant obstacles still remain if we are going to see the S&P 500 recover from this latest down turn.  Greece is going to need to have elections and if the leftist government takes over they will default on their obligations and that will send the market lower.




Elections in the US are coming up in the fall and last year this time we began a sprint towards the debt ceiling issue which ended in a US debt downgrade.  Even though the politicians have said that it won't be an issue before the election this year, it still could be especially if the government runs out of money.

I still believe we continue to rally this week.  I believe some of the jobs reports will be positive and we should end the week on a positive not.   I am pretty light on trades right now I am waiting until the really loses some steam to jump back in.

In the case that the rally stops just remember the type of market we are currently in we are trading below plenty of moving averages which means there is bear sentiment in the market and trade appropriately.

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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