As shadows lengthened across Wall Street, thoughts turned to home, and traders sought a final if temporary truth in the wandering prices that are the market, the low level chart of blue-chip stocks displayed the terrifying face of the Anti-Borg.
Resistance was anything but futile.
On the 133-tick chart, in the last hour of trading SPY tested the $115.14 resistance level 11 times, made it as high as $115.16, but then drew back.
At 3:27 p.m. Eastern SPY threw in the towel and capitulated, rapidly dropping to $114.65 before bouncing up to $115.08 and falling yet again.
The final truth of this market session for SPY was $114.97, 2 cents below Tuesday's high.
It was a dismal end, for bulls, to a day that saw SPY push past the peak of a 72% bull market that ran from March 2009 to last January. The price topped the day at $115.28 before quickly pulling back below the resistance level.
What lies ahead? Don't we all wish we knew?
SPY is sopping up some of the shares that got left on the table when prices reversed in January. Selling at resistance won't dry up until those get-me-outta-here shares have changed ownership.
Once that surplus of selling interest has been satisfied, then we'll all learn whether the opinions that propelled SPY above $115 are still driving traders.
If the opinions haven't changed, then resistance will be broken and the Anti-Borg can go slinking back to its Anti-Trekkie lair.
If the opinions have weakened or reversed, the Anti-Borg will have won.
No comments:
Post a Comment