SPY: Happy Gappy

Follow me if you will once again into the world viewed by a day trader.  This is their world I assume, because they have to watch this stuff all day (or at least their machines and/or stop losses do).

We noted that SPY was rising to fill the opening downside gap on Friday  check, and that bears would not like to see 214.60 broken.  But those were day trader bears who would fine tune by 60 minute, 30 minute, 15 minute, etc. charts.  Even still, who’s to say today’s little expression of joy is not a gap to be filled quickly on the downside?

spy 60 minute chart

But even if Friday was a gap and trap for bears, longer-term oriented bears would see this daily chart and maybe not love the look of the MACD, but could continue to hold the fort as long as SPY resides under the noted resistance level.  Short of a break above the SMA 50 after all, is just bull Shenanigans.  It’s been all bull and bear Shenanigans after all, since August.

spy daily chart

Still longer-term bears should not even be bears because the trend remains up and being bearish would be akin to saying a) I know that SPY is going to drop from current levels to test massive support and b) it is going to fail that support level.  Anyone actually saying that is promoting agenda.

spy weekly chart

I am well prepared for a bearish drop to a support test but that’s about it.  And I am not trying to capitalize on that bearishness but rather protect some positions.  Capitalization mode would come with a failure of support and longer-term trends turning down, in my opinion.

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