This area of the gap of 6/23 is likely to get volatile. At the top you see the resistance from last week that prompted me to say the market needs a pullback before attempting to break out above that resistance which is key.
What we were looking for in the pullback was for a positive divergence, showing some strength to take on the resistance level around $129.80.
I think the pullback (in white around price) has accomplished what I was hoping to see. I think the market probably does have enough momentum in 3C to take on the resistance level. Intraday though we may see a pullback to take on this gap first. 3C has been suggesting that to be the case most of the day.
If the market can break the resistance level near $129.80 (SPY) then it may be enough to force the shorts to cover and send us up toward the 50-day moving average.
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