SPY Charts – 1 month vs 6 months

I charted the S&P 500 ETF, SPY, this morning at 11:25 when it was trading at 100.33.  To my eyes, this highlights some of the uncertainty in the markets right now.  If you only drew the one month chart you’d see clear support at the trend line of higher lows and could easily make the case to buy, but if you scroll down to the six month chart below it you see clear resistance at the trend line of higher highs.  What’s a trader to do?  I suggest waiting this out at least until the one month chart’s trend line breaks.

I’m expecting SPY to drop some from here.  That’ll break support on the one month chart, but will move into a better position on the six month chart.  If we could get a 10% correction from SPY we’d be right at the support line of higher lows on the six month chart and would likely be an excellent entry point for new SPY positions.

First the one month chart:

… and now the six month chart: