Key Level To Watch
The markets are fractionally lower today after hammering into a major double top level on Friday and retesting it at the open today. The SPDR S&P 500 ETF (NYSE:SPY) opened at the highs from Friday which happens to be the key double top resistance at $114.85. Note the chart below. The markets sold quickly after opening at this point and are trading at the lows of the day. Volume is anemic as no economic news was released. If the $114.85 level cannot be breached within the next day or so, it could spell trouble for the markets. In addition, any drop in the market must have volume behind it to be legitimate. If volume is not present, do not put too much emphasis on the fall unless it takes out $112.20.
Chief Market Strategist