Earnings and Resistance
The bulls have got the market churning again even though a week earlier everything was completely different. A bottom call from Doug Kass and some “value buying” later we are back to where we started with our recent short. Earnings starting this week will be good I’m sure, but whats important is the market reaction. Technically there has been a lot of damage done. This results in a lot of overhead resistance that will make for a volatile push upwards.
The chart below shows the SPY year to date with the 25, 50, and 200 day moving averages. Also on the right side I put in the overhead resistance levels at the current time. As the market moves and the moving averages move the resistance levels change.