Today the SPY ETF pushed below the 200 daily simple moving average of $276.28 and made a low of $273.91 … a close back above or around the 200 SMA will be a bit of a victory for the bulls but it would be best if we did not make another lower low today.
As I discussed in yesterday’s blog post, the weekly candle needs to close somewhere off of the lows when we close for the week tomorrow. The 50% level of the current weekly range is $281.385 and the 38.2% level would be $279.62. For me, a close at or above those levels gives me more confidence that there is not a lot more selling right now. Things can change with a new Presidential tweet next week, but that kind of close for the week would be good.
Cheers … Leaf_West