The S&P 500 Index is being led higher by big gains of 2% or more in the large S&P components of J.P. Morgan Chase & Co. (NYSE: JPM), Bank of America Corp. (NYSE: BAC), and General Electric Co. (NYSE: GE) after Mario Draghi unveiled his bond buying plans.
For Thursday’s S&P 500 SPDR chart analysis, Phil Erlanger said:
Wednesday we were trading pivot to resistance when we penned. It was noted, “The test is to move above pivot at $140.87 and hold there. Also, watch to retake the 5 minute high of $141.06. Get more aggressive on the short side if SPY breaks pivot.” The short side worked for a move down to $140.65. Remember to use trigger indicators to cover shorts. Today is a gap open well above resistance. Watch to see if the 5 minute high holds at $142.31. We would use the 5 minute low to go “aggressively” short at $141.92.
If you did not watch our video from August, here is the link for your review.
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SEPTEMBER 6, 2012
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