SPY Chart – Hello Resistance

I charted SPY at 9:56 am on July 30, 2009 when it was trading at $99.24.  I’d love to jump into this rally, but the line of resistance from the trend line of higher highs looks menacing.  It looks like the 10 day moving average was close to touching yesterday, but SPY gapped up before it could actually get there today.  Now it seems it’s a better idea to sit back and wait for SPY head back to its trend line of higher lows before making the next bullish move.

Just because I don’t want to add SPY to my account right now doesn’t mean it’s coming down right away.  I just don’t see big upside potential from here.   SPY is still showing strong momentum in the Williams %R indicator, so I’ll just keep watching from the sidelines for now with the belief that a better entry point isn’t too far away.