This weeks price action has been choppy going into support at $134.50 when we tested that on Wednesday. And I thought it was impressive enough at the bottom that we would get a little more of a boost than we have. Today was particularly disappointing because most of the week we rallied into the close, but today we retreated off the highs of the day. I believe going into next week we will get a short term bounce and fail to reach $137.50 that will put us officially into a bear walk.
|SPY Chart 5/11|
$137.50 is key to get over because it is not trading as resistance both the 20 and 50 day MA and breakout S/R is at $137.50. That is why this week I have been looking to add a few more bearish trades to the menu. Don't get me wrong there are still some good bullish stocks out there but due to the conditions now I feel it best to start looking at more bearish trades.
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Disclaimer: This article is intended to be informative and should not be construed as personalized advice as it does not take into account your specific situation or objectives