July 28, 2017

Failed Breakout on all the ETFs I follow

The S&P (SPY) gapped higher today to close the last of the overhead gaps on SPY. Guess what happened next? If you guessed a sharp decline then you are right? Is this the final trap for the bulls, at least over the short-term? The decline that followed (and still going lower as I write this post) has moved below what has been a strong area of overhead resistance at $114.73 and is now testing short-term support at the 1130 level on the /ES (S&P futures) or the $113.80 area on SPY.

Here are a few good charts from my friends Tim Knight and Serge Farra.

I am still holding my SPY puts with the expectation of a close of the 9/14 gap at $111.02 (high from 9/13).

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I will be back with another post later this evening. Stay tuned!