S&P Chart Weakness Ahead of Presidential Debate and Unemployment

For Tuesday’s chart analysis, Phil Erlanger said,

Monday saw SPY above resistance at $144.53. We noted, “Watch to see if the 5 minute high of $144.91 can be taken out to move SPY back above $145. A move below resistance would be an opportunity to get short intraday. Triggers should then be used to manage the trade.” SPY failed at resistance and closed at $144.35. Today futures were el fuego and it looked like a strong open. Now SPY has broken pivot of $144.68. Clearly, stocks that make up SPY are not living up to their potential and we would be a cautious buyer as we are in the worst of the seasonal weakness that lasts until October 10th.

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OCTOBER 2, 2012