SPY daily inside bar on watch for short term direction
SPY saw a much higher open today after a bounce premarket. Bulls were unable to break the high of premarket in the first moments of trading, and after a hard battle finally gave up and dumped back towards yesterday's close. The bulls bought the dip in the afternoon and we're left with a daily inside bar, and a potential bear flag. Today's high rejected from the Lower Bollinger Band, which is normally resistance on the first bounce attempt after a dump like this. The day closed well below the MA200 as well. The support I mentioned did in fact hold the low of day when we didn't get the gap-down & flush scenario, so our hidden bullish divergence is still in play, where price makes a higher low and oscillators make lower lows.
The hourly chart gives us the clearest picture of the setup going into next week, where we have an hourly equilibrium setting up. Our hourly bullish divergence played out premarket in the form of that bounce, and we now have a tightening range to watch to give us short term direction. The range is the high and low of today.
Support is 272.37. Break that and the likelihood of seeing further downside, and maybe even more dumping will increase.
Resistance is 277.07. Break that, and we will look for our daily oversold bounce to get underway.
The hourly chart gives us the clearest picture of the setup going into next week, where we have an hourly equilibrium setting up. Our hourly bullish divergence played out premarket in the form of that bounce, and we now have a tightening range to watch to give us short term direction. The range is the high and low of today.
Support is 272.37. Break that and the likelihood of seeing further downside, and maybe even more dumping will increase.
Resistance is 277.07. Break that, and we will look for our daily oversold bounce to get underway.