SPY Chart – Broke Above Down Trend

I charted the past 21 days of SPY after I saw SPX was stuck at 1080 again.  Looking at the difference between the SPX chart and the SPY chart can be interesting sometimes.  SPY typically follows the SPX as designed, but every once and a while you’ll see SPY overshoot slightly on either side. SPY is stuck around 108, but just as it dipped a little under it a few weeks ago before breaking below 108.00, SPY edged up a little above 108.00 today too.    The fact that SPY broke above its downtrend line of lower highs is less exciting since 108 remained resistance.  Tomorrow will be interesting to see how SPY opens.  A solid move above 108 could be a sign that a lot more gains are on their way.  A reversal with 108 remaining as resistance could send SPY back on its path lower.  The trend line that was lower highs could end up acting as a trend line of lower lows.

The 10 day moving average for SPY is at 107.89, so nearly dead on where it closed for the day, but slightly to the bulls favor.  Again, tomorrow will be interesting to watch this one too. 

Efharisto Hellas (Thanks Greece).