$SPY - after a strong rally from the pullback in the first week in March, we have now approached an overbought level under $283. Stochastic's are over 80 showing us overbought condition, along with a pinch of the upper bollinger band on the daily chart. We also have a thick area of resistance/buyers in the low $280's from the past 6 months of price action.
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- All of this indicates, for a bullish move, we want a consolidation under this $283 level, while the stochastic and bollinger bands catch up to price action. A basing action under this level should signify a daily breakout to highs again.
Bears are looking for either a gap up into resistance, for a pullback to support under $280, or a fade off the low $280's for a pull back to $260-$270's.
No direction made yet just a constant grind for the last week in the market. More and more intraday longs are getting faded, also signifying market weakness, or potential short-term reversal for bulls.
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