Despite the mediocre rally today; the SPY chart is showing a possible breakout to the upside from the 61.8% retracement of the previous leg of downtrend.
Take a look at the daily SPY chart below:
Do you see how the momentum indicator lines at the bottom reflecting a mini-uptrend while the daily chart clocks a new high? Although the current price is now trading below the breakout line (Nov 2nd high); the overall mini-uptrend from Nov 16th is still intact as far as I’m concerned.
All we need now is the money flow to kick start the breakout run. However, we are not totally out of the wood yet; the 61.8% Fib retracement is right around the corner so a falling-off the cliff can happen tomorrow or Friday.
I got busy today. I moved more cash into the market by buying more EXK, SSYS, and EMAN. I also initiated position on WPRT and GLOG. (I’m now tweeting my daily trading activities here @followtheprice instead of at the comment area in my iBankCoin blog post; follow me if you are interested).
I’m now holding AMRN, LRAD, SSYS, SZYM, EXK, DDD, USU, NOK, EMAN GLOG, WPRT & 16% cash.
How we trade tomorrow and Friday may determine whether the 61.8% Fib retracement resistance will hold or not.
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