Stock, Option and Futures Trading
SPY Support $139
Today the markets tried to push down then support held and the market short squeezed back up. The move up does have resistance on the 60 min chart but the fact the market came up off the lows is bullish. Even if SPY comes down into the 139 zone it is still a bullish pattern. Right now is where it feels right to be short because the market has made a move up but the move down is no way confirmed at this point.
The Daily chart might seem extended but the Daily chart is not the chart that is in play. The Weekly and Monthly charts are the ones that are in play so it would still make sense to go higher from an extended condition on the Daily chart. Right now the market is in a zone where it will either break higher if SPY can clear 142 or go down to 139 and suck everyone in short to have a bigger short squeeze from support.
The short trade might feel right but technically it is too soon. This could change over the next two days but for now we would anticipate support to hold around the 139 level