Today the markets opened flat and sellers seem to be leaning on the $SPY on the downside. Philly Fed was poor , but I guess the poorer you get the more the stimulus boys and girls come around.
A few stocks are acting well during that decline, but nothing so convincing. $SPY high of the day is $135.26 under yesterday’s gap of $135.46. For the day, if we are to stay weak, Bears shouldn’t let Bulls reclaim $134.70 if so then we may see that bounce I talked about in the pm.
So how I see it, longer we stay below $134.00 (R2) the higher the probability we BREAK $133.25 today’s lows for this intermediate ascending channel to move to downside further. The one thing I am seeing however is the bonds hitting resistance so we could bounce at this level but if we take out the lows expect further downwards action.
