Wednesday’s Charting Of S&P 500

If you weren’t looking at a 3-5 day chart of S&P 500 (SPY), then you missed some key support and resistance points for today. I have to admit, days like today are the most difficult to trade. Essentially the market can’t make up its mind due to the uncertainty of this bailout package. It’s dragging…and dragging…and dragging on. Markets hate this.

The key factor I was looking for today is if the market was making higher lows, and it did not. Therefore, a short-term bottom was not in place as of today. Tomorrow may be a different story. If you see a cupping pattern form, that may be a short-term reversal to the upside. Any breaks at the major support level above means we’re going down hard.

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