an tSionna (04.11.14}

I'll have more to say about market volatility next week.  For today I've identified the current near term support and resistance levels for the S&P 500's ETF SPY.  I think an important clue as to near term performance is going to come about by seeing how the markets react to the support points between 180-182 on the index.  

Our indicators are showing that we are also getting oversold enough that some sort of rally could soon take hold.  At this point it is hard to get a handle on what that rally could look like.  Again probability suggests that the resistance level we've tagged above could be a barrier to higher prices.  That's particularly true  if the next time it is tested comes soon during the context of the next rally.

More at the beginning of the week.

*Long ETFs related to the S&P 500 in client and personal accounts.  

Chart is from Stockcharts.com