Yesterday we noted that support on SPY was $140.88. It traded to $140.87 and then rallied into the close to finish at $141.21. Was this a coincidence? No way.
The high fregquency and algo guys knew this level and defended it. Did you? If not, then you should have. We will post the SPY value line levels today so that you are “in the know”.
The second point this morning is that the 50 day moving average on SPY is $142.12. On Monday we moved through this level but failed by day’s end closing at $141.45.
The third point this morning is that the retracements from the November 16th low to the high hit on Monday are now in play if SPY has peaked for the time being. The first test would be $139.71 (38.2% retracement), then $138.75 (50%) and finally $137.79 (61.80%). Remember the market is a series of two steps forward and one step back.
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