Beware the web they weave

I figured that I would do a chart on the S&P's mirror, the SPDR. It recently broke its 128 resistance and rose to ~131. Yesterday it fell but bounced off its ~128 support and headed back up today. From mid-July to now it has been making higher lows. I'd watch for that to continue. And I would definitely watch the 128 level. If it breaks below that level we could see the SPY retest the 120 level. Looks like it may hit 135 before that happens though. Some who I respect even say 140. Anyway, realize that these large daily changes show uncertainty and weakness in the market. Keep some nice stops.

The volume is nicer than it was in May and June, although it is down from its high of ~500million. Waning volume is not a good sign. The stochastic is pushing up to the overbought region. Not sure how much affect that will have considering the market manipulation that seems to be occurring; however, should a negative divergence start to appear, we will probably be headed for a pullback.

Good trading. And: this post is for the growth of knowledge only.