SPY Charts 5/8 Looking to Rebound

As I said yesterday the SPY was probing for support and today and it did just that.  The news that got the SPY rolling this morning was the instability of the Greek government being called into question.  Markets hate this kind of stuff, and in my mind it was an excuse to sell off because no matter how you slice it Greece is going to be heavily influenced by the EU to get their act together.  On that news the SPY sold off and by mid morning was off 1.5%

SPY Minute Chart

Now being that the SPY was probing for support around $135 right after 11am it hit $134.95 at its low and as it hit that level, just like we expected, buyers came in and it was a strong rally into the close and we even eeked out a small gain for the day.




What we are seeing in these charts is the validity of the support level and that even though market direction is not overly bullish it still has some bullish upside.  We should see the SPY move up steadily the rest of this week, and don't rule out a very quick bounce either.


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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