The SPY Struggles to Hold a Key Level

Another gap up, but can we hold. Taking a glance at the five-minute chart over the last two days, it appears that we absolutely need to hold the $178 level in the SPDR S&P 500 (SPY). There is an "M" pattern starting to form. Actually, it is well formed, and a breakdown from here would be very bearish. At the very least, I would suspect that if we lose $178 intraday, we will test yesterday's lows.

The good news is that we are actually a bit oversold here on this retracement, so as long as the SPY holds $178.40, bulls should have enough encouragement to push higher. Under $178.40, I would say it is a no man's land where either side could take control. I have no interest in being involved between $178.10 and $178.40. So in the end, I will be leaning bullish over $178.40, bearish under $178 and sitting on my hands otherwise....191 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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