S&P 500 ETF- SPY Trading Analysis
The SPY is fairly easy to read with no surprises. This is expected during the season we are in. Over the last week or so we have been in a very tight trading zone and have been unable to break through the 120.20 resistance zone that has formed as it continued to push up.
Stochastics and RSI both are supporting the zone. After a 10 day swing down, both indicators support the move with no news that is standing out at all. We are either resting in a consolidating zone, or we are trying to push through but do not have the momentum anymore and will now turn down.
Influencing the Markets-
Asian stocks are negatively influenced by the Korean conflict but that is short lived. Sovereign Debt issues continue to plague European markets.
There are talks of corrections coming in the market, either by spring of 2011 or earlier. Last spring we saw a 16% correction. Talk of this next one has a much better outlook of 3% to 5%.
Another good point, many leading growth stocks are bucking the weakness and grinding higher.
To wit, check out F5 Networks (FFIV), Rovi (ROVI), OpenTable (OPEN), Acme Packet (APKT), iGATE (IGTE), Netflix (NFLX), Chipotle Mexican Grill (CMG) and Apple (AAPL). These stocks have proven very resilient and shown the ability to quickly brush off any negative news and continue higher despite the overall market. This shows positive long term signs.