SPY Making or Breaking It....How To Read it Right Now
I am a firm believer that market predictions are predictions. They aren't facts. I am not here telling you which way the market will go. I can honestly say that I do not know. I am here to explain the probability of movement in one direction or another. That is what it is about. Remember, anybody can make a chart look convincing in one direction or another.
The
SPY has gotten smacked lately and a lot of people are scared. If you follow my posts, I have been slightly bullish during this time due to some bullish divergences and chart patterns. The one key thing that I have always said is that the 260 level is key. I see this as the main support level that we have seen since the beginning of this year. We are currently very close to that level. What does that mean?
For those bulls out there, this is a buy time. We are right at the support and a bull would be looking for a bounce back towards the all time high.
For the bears out there, they are getting ready to sell (if they aren't out already). They think that falling through the support will send us on a seriously dark path.
Here is the thing, I agree with both of these conclusions. There is no right answer.
But, there is a smart way to trade it.
I think if we break 260 it will get ugly, but if we hold close to it, we should be alright into the end of the year. So make a plan. Don't hold on when the odds are against you! If we break 260, I guarantee the market will fall fast. Plan for that.
On the flip side, selling right now out of fear of what "might" happen is also bad. If you do that and it bounces, you have now sold on the bottom! It is all about having a plan in place. One of these two scenarios is bound to happen. Plan for both so you can get the most out of your trade.
The
SPY has gotten smacked lately and a lot of people are scared. If you follow my posts, I have been slightly bullish during this time due to some bullish divergences and chart patterns. The one key thing that I have always said is that the 260 level is key. I see this as the main support level that we have seen since the beginning of this year. We are currently very close to that level. What does that mean?For those bulls out there, this is a buy time. We are right at the support and a bull would be looking for a bounce back towards the all time high.
For the bears out there, they are getting ready to sell (if they aren't out already). They think that falling through the support will send us on a seriously dark path.
Here is the thing, I agree with both of these conclusions. There is no right answer.
But, there is a smart way to trade it.
I think if we break 260 it will get ugly, but if we hold close to it, we should be alright into the end of the year. So make a plan. Don't hold on when the odds are against you! If we break 260, I guarantee the market will fall fast. Plan for that.
On the flip side, selling right now out of fear of what "might" happen is also bad. If you do that and it bounces, you have now sold on the bottom! It is all about having a plan in place. One of these two scenarios is bound to happen. Plan for both so you can get the most out of your trade.
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