Chart Talk {09.20.15}

Chart of the S&P 500 ETF SPY.  Original unannotated chart is from FINVIZ.com.  SPY suffered a nasty reversal that began after the Federal Reserve decided not to raise interest rates last week.  Seems the dovish comments in conjunction with that meeting made certain market participants nervous.  It also might be that in the short term the market was over bought and had reached resistance while also rallying nearly 3% prior to the Fed meeting.   

As I stated in the chart above, probability now suggests a greater likelihood that the market will now in some manner retest the lower end of the range as we are still not oversold in the near term by our work.  Clues to future market direction and strategy will be taken from how investors react to support on the chart if such a retest occurs.

*Long ETFs related to the S&P 500 in client and personal accounts although positions can change at any time.