SPY stalls near resistance
As one might expect, there is no change in the short-term or medium-term trend. SPY gapped up five days ago and formed five indecisive candlesticks. There has been little movement from open to close. Post-open price action has been choppy as the ETF trades near its Nov-Dec highs. Not only do we have a five week consolidation working, but we also have consolidations working intraday. It is a standoff between bulls and bears right now. Despite this five week standoff, the bulls still have the edge because the medium-term trend remains up.
On the 60-minute chart, SPY has been edging higher since mid November. The ETF is holding the gap/breakout above 110.5 and trading near resistance from the early December high. I am going to leave key support at 110.4 for now. I could raise it to 111, but this may be asking for a whipsaw. The bigger trend is up, seasonality is bullish and the Fed meeting has passed. As such, I will keep a bullish bias as long as support at 110.4 holdeth.
