S&P Chart Fighting News Tape

Stocks are trying to fight into positive territory after the Philly Fed and after Leading Indicators, but investors have to consider two issues today. Some profit taking may be in the cards and options expiration date is tomorrow. Today we are analyzing the SPDR S&P 500 (NYSEMKT: SPY) as it is the most liquid and most representative of the broad markets out of all the ETFs which trade.

For Thursday’s chart analysis, Phil Erlanger said,

Wednesday we noted that the morning action was testing the previous day’s last two hour high, but once it broke that, it was a straight shot to and through the daily resistance (145.90).  It came back to test the resistance and then a really hard test, but ultimately traded above and closed towards the highs of the day.  We are one day away from options expiration, so expect some whippy action today.  We are contained between resistance of 146.54 (red) and support of 145.64 (green).  Key will be crossing the pivot 145.98 (pink) as we trade below that area for now.

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OCTOBER 18, 2012