Monday, October 15 2012
It looks like we dodged a bullet today. From our last look at the SPY price/volume chart in our previous email, it looked as though we could be about to experience a serious downdraft. But, MIPS kept us LONG, and we are glad it did.
Today, the SPY hit a very critical downside price point and bounced back to the upside (see graph below).
At a price of $143 per share (black line), the SPY encountered the following resistance levels:
1) the 50-day EMA (green line),
2) the intermediate term trendline (blue line), and
3) the bottom of its six weeks trading range (cyan box).
Needless to say, it did not breach any of these resistance levels (which should prove to be very positive).