SPDR S&P 500 ETF (SPY) Trading Outlook (3-5 Days): Bullish, but downtrend still intact.
Minor stabilization occurred on Monday looks to lead to a bounce into election day morning (as futures are pointing higher. I would expect that this should be led by defensive sectors such as Energy (XLE), REITS, and Utilities.
Price levels on the S&P 500 ETF (SPY) that look important are 335.62, then 338.
How one plays this, if at all, depends on one’s risk tolerance and ability to cut losses quickly if the trend turns down. The downtrend from mid-October remains very much intact, making this rally attempt short-term (as of now).
Two price levels look important, one being 333 and the other up near 340. Bounces should find solid resistance at 340 and is an area to consider selling gains and adding hedges. It’s tough to make too much of this, but it doesn’t seem immediately bearish.
Twitter: @MarkNewtonCMT
Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
