S&P 500: Trend Break & Test

9:12 a.m., EST

Trend Break Last Friday

Underside Test, In-Process

End Of The Line?

It’s about twenty minutes before the open. SPY, is trading essentially flat.

The daily chart above, shows the up-trend break was last Friday on increased volume.

SPY, has also posted a bearish divergence appearing to show significant weakness; attributed to MACD lines and histogram declining in parallel.

Getting a closer look (below):

Volume increases on the way down and decreases on the way up: Bearish

We also have a terminating wedge:

Yesterday was a test of the underside trend break. Today may continue that test or reverse at the open.

If SPY can somehow get above the trend break, it has a new lease on life.

However, with bonds, the dollar and gold already in reversals, probabilities suggest we’re at the end of the line.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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