S&P 500 Chart Tries to Look for Support

After a huge gain on a post-Thanksgiving shortened Friday, stocks are seeing a bit of a give-back and profit taking so far this Monday. With so many traders and investors having been out for the holiday, now the charts have to adjust to the data. We are analyzing the SPDR S&P 500 (NYSEMKT: SPY) as the most liquid of all ETFs covering the broad market.

For Monday’s chart analysis, Phil Erlanger said,

As we get back to normal trading activity, SPY is range bound pivot to support. Watch to see if stocks can rebound from early weakness and SPY can move above $140.93. It would be an ominous sign for the market if SPY cannot hold support at $140.46. Last week was an exceptional week as we traded above resistance two day and resistance to pivot two days.

Another major issue to watch is that the SPY chart is currently in between its 50-day and 200-day moving averages. The 50-day is up at $142.66 and the 200-day is down at $137.61 versus the current price of $140.75.

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November 26, 2012