Tackle Today: Testing Support on the SPY
May 14, 2020
≈ An important technical price point ≈
Traders,
Jobless claims data came in this morning which propelled the market to sell for another day (at least at the open) following a few days of red across stock prices. The broad markets are mixed over the last few weeks, with general strength in communications and technology and weakness in most other sectors.
The SPY, the popular ETF that tracks the S&P 500 has now come down into a price level that is especially important. Support on the daily candlestick chart is going to be tested today. Will it hold? We do not know yet, but the price test will have significant implications on market sentiment.
When support holds on the broad markets, its wise to look to some of your favorite bullish setups as potential trading opportunities. If support breaks, you should have a list of bearish setups ready so you can play whatever the price gives you.
Remember, as a trader, Price is King, and right now, price is set for a big test.
Chart of the Day
SPY
Above, you see the daily candlestick chart for the SPY with pretty clear Support and Resistance zones developing. Which way will the range break? Right now, price is testing support.
Video of the day
Support Zones vs Support Pivot
Support Zones are an important concept for traders and learning to identify the formation of a new support pivot can be an excellent buying opportunity for traders looking to cash in on the upward movement in price that follows the formation of a new support zone pivot.
Rookie Corner
What HollyWood HAs Taught ME About Fundamental Analysis
Good Day Rookie Bloggers! I hope and trust you are all doing well in these turbulent times? I fully understand this is a struggle for a lot of people as this has pushed many of us way out of our comfort zones in a multitude of ways.
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cashflow Club 8:30 PM EST
Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Financial freedom is a journey
The Tackle Today series is brought to you by Tackle Trading.
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
# Sign up now for a 15-DAY FREE TRIAL #
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.
