S&P 500 Chart Versus Anti-Austerity Protests

Stocks are on the defensive after yesterday’s anti-QE3 comments from Fed President Plosser got the selling started. Now we have anti-austerity protests in Spain and Greece trying to reverse the austerity measures. The U.S. markets are holding up rather well, but overseas is off worse. Today we are analyzing the SPDR S&P 500 (NYSEMKT: SPY) as it is the most liquid of all ETFs.

For Wednesday’s chart analysis, Phil Erlanger said, “Tuesday we noted, ‘SPY was trading pivot to support. Watch to see if we can hold pivot at $145.56 or break out above resistance at $146.07. Otherwise another range bound day may be ahead.’ Well SPY did get above resistance and then failed at resistance, pivot and support to close below support. Pivot was $145.56 and one could have gone short there for a nice gain as SPY closed at $144.10. Today SPY is trading pivot to support. The range from resistance to support is VERY wide given yesterday’s puke. Pivot will be a challenge today. SPY could be down for a fifth day in row which is very oversold on a number of days basis.”

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SEPTEMBER 26, 2012