9-29 Mon: The downward channel from the ATH is still working quite nice. Thursday's low matched up nicely with a 50% retrace of the entire August rally. Next levels to watch below will be 194.82 and 193.21. If the lows are broken after the open SPY could test the 194.82 area today and still be within the channel.
Top channel line should be watched closely as the 4 previous pull backs ended with a break of the top downward channel. With 3 of last 4 breaks occurring with large gap ups on the morning open.
The current top trend line matches the following prices for the next couple days open:
Tue - 197.40
Wed - 196.60
I have a small put position opened from Friday's ramp and will look to close today. After that i plan to watch and wait, depending on action I'll begin to look for a small long position for what could be a strong back half of the week.
Top channel line should be watched closely as the 4 previous pull backs ended with a break of the top downward channel. With 3 of last 4 breaks occurring with large gap ups on the morning open.
The current top trend line matches the following prices for the next couple days open:
Tue - 197.40
Wed - 196.60
I have a small put position opened from Friday's ramp and will look to close today. After that i plan to watch and wait, depending on action I'll begin to look for a small long position for what could be a strong back half of the week.
