S&P Chart Read: Trying to Hold Gains

Stocks are trying to hold on to gains this Monday stage a bounce after four days of steady selling was broken with only a marginal gain on Friday. A mixed set of economic readings from retail sales and the Empire Manufacturing data came out ahead of this week’s earnings floodgates. Today 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,

Friday when we penned SPY was just moving above pivot. We noted, “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. Looks like bargain buyers have appeared today.” Again the market faded as SPY closed just below support. Today SPY is trading around pivot at $143.14. We remain cautious given last week’s inability to hold any early gains. However, this week is expiration week so anything is possible and the market could have a rebound. SPY has not traded above resistance since October 2. Last week was not a positive for the bulls when one looks at the intraday action.

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OCTOBER 15, 2012