500 ETF ,” that uses the symbol “SPY,” has been influenced by the stock market
this week. Its stock price stands at $110.74 As we learn in Yahoo’s Financial Profile they write this about the
Fund: “The investment seeks to correspond generally to the price and yield
performance, before fees and expenses, of the S&P 500 Index. SPDR Trust is
an exchange-traded fund that holds all of the S&P 500 Index stocks. It
is comprised of undivided ownership interests called SPDRs. The fund issues and redeems SPDRs only in multiples of 50,000 SPDRs in exchange for S&P 500 Index stocks and cash."
We spoke about the SPY having a down week this last week because we knew it had reached the top of its Bollinger bands. As we wrote, this is what happened, a pretty uneventful week as it inched down on a daily basis and ended up Friday where it started the day.
This last week we appear to have been trading in the same consolidation range that the SPY traded in toward the end of last year from mid November through mid December. These are two significant support and resistance areas. If we continue to bounce off support we could possibly see a break through up to 115 level again.If we bounce off and form a downward patten, we could form a larger trading zone that could flow up and down from 105 to 115 for an extended period of time.