Shootanappleoffmyhead

Today was a considerable down day on the SPY. This comes after price on the ETF encountered a pretty solid area of resistance going back months. As you can see on the chart this area used to be support but then turned into resistance once price broke below this area. Price has not been able to reclaim that territory since.

So what comes next? Will we finally see the pullback that all of the finance monkeys at CNBC have been calling for (at least the decisive ones)? Or will we see price pull back to at least the 105 level before moving back up or consolidating for a while? I myself believe the ladder. I believe that the bulls are slowly losing control but the bears are not yet enough in number to stage a complete blowout just yet unless something like 9/11 happens again (God forbid). You be the judge, but remember this, What goes up must come down. It's science.

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JDUKIE

The NYSE index shows a slightly different picture. This recent rally failed at the supply level set in early Feb. I hope the the image of the index posts below

Shootanappleoffmyhead

Hi JD,

Yes, this is true. Both the uptrend line and the horizontal s/r line played a role in the reversal of price. Thanks for pointing that out. I hadn't even looked at the nyse. What's your opinion on how far down we are headed here?

SHoot.

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JDUKIE

If we follow thru this sell off with decent volume, the NYSE 6600 range looks like the next demand level... this would be the 4th test though. so maybe lower even?

I've noticed that many of the market turns occur at support and demand levels visible on the NYSE index where there may not be a corresponding level on the DOW or S&P or the NAS. Why do you think it is that this index does not get the attention of the others??

Shootanappleoffmyhead

Hey JD,

Well, after todays little rally it just gets more interesting.

I think the answer to your question is twofold. Firstly all of the indices go through times where they appear to respond to certain levels better than others. So looking back to a specific period of time one might think that the NYSE is much more responsive to a certain dynamic such as support/resistance. As far as why the NYSE doesn't get as much attention as, let's say, the NDX... Although the NYSE has a higher market cap the NDX trades more volume and has a lot more leading issues, meaning stocks that could move the market if they were effected. A good deal of the larger influential companies today are in the tech sector, which are almost exclusively listed on the nasdaq exchange.

Looking for a pullback tomorrow to make for an indecisive market setting, at least in the short term.

Shoot

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