S&P Chart Shows Bargain Buyers Back in the Game

Stocks are trying to stage a bounce after 4 days of steady declines. Maybe the VP-debate matters to some and maybe a stronger than expected Reuters/UofM sentiment report for October are helping the trading action. We are analyzing the SPDR S&P 500 (NYSEMKT: SPY) as it is the most liquid of all ETFs.

For Friday’s chart analysis, Phil Erlanger said,

Thursday we wee trading above resistance at $144.04. We noted, “A break of resistance to the downside would be painful for the bull camp.” This is what we got. As we closed pivot to support. Today we are just moving above pivot. The early futures were +6 on the S&P 500 then faded into the open and are now up almost +5. We like this type of move as opposed to a fade from the get go. It looks like bargain buyers have appeared today.

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OCTOBER 12, 2012