SPY Charts 6/27 SPY in Holiday Mood

Today it was the U.S.  good news that one the day.  The SPY and the market as a whole rose on good housing data and absence of an substantial news from Europe.  Light volume the last few days is an indication that a holiday is around the corner.  That should entice the markets higher in a continuing of the rally we have seen the last few days.

The worry is still Europe and a short week with a lot of economic data next week could re-inject the markets with a lot of volatility.

The interesting thing to me was that we had a good move up today and MACD and Stochasitc's stayed down or neutral.  For me that is foreshadowing some bearish move.  Maybe not tomorrow or Friday, but I believe that next week we could be setting up for a big move.  I am leaning more to a bearish move.

The SPY could be in mid stages of forming a double top. (The Power in Trading Double Tops)



If SPY rallies to its trendline at $136 and there is a neutral reaction I would say that becomes an opportunity to jump into some bearish trades.

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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