SPY Chart 6/19 SPY Still Moving Up

Today was a break through for the SPY ETF and the market as a whole.  We finally pushed above $135 which has been a strong resistance level since last summer  The concern should be is can the SPY hold $135.  Spain and Italian bond yields are rising and that is a very dangerous warning sign that the market could reverse very quickly as yields in Europe continue to climb.  What could stall that reversal is the announcement that the Fed will extend Operation Twist and that will allow the market to climb higher.

The five days of gains could also signal a reversal or at least a topping of the momentum.   The stochastic indicator is in an oversold position above 80 that in combination with a strong resistance level is creating a situation for a reversal soon.  Any breaking of  last weeks trend and a close below $134 could signal that the market is over with the rally.

Be nimble in this trading environment as things can change on a dime and the bull rally could easily turn into a bear sell off





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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives