The chart above is a daily bar chart of SPY etf. We can see a breakdown of the long term uptrend trend line, 10 ema has swinged to the down side and crossed the 50 ema, and price action has also breached the 50ema, all bearish indications that the intermediate uptrend has ended. A high volume spike has defined a critical price level that has shown support at the $125 level.
Below is a 1 minute intraday chart spanning 2 weeks, the gap area can define a possible critical price area that should define a resistance area around the $131/132. Volume on the intraday shows significant selling, and would not have a bullish sentiment until we are clearly trading above the gap area for a few day. These are tradeable price levels whether you are going long or short. It the price levels that give minimum risk, as stops can be set tighter by understanding where the price levels are. In the next few weeks I believe we might go range bound between $125 and $132.
