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| Last week we expected SPY to test the support line. It dropped from Friday's close of 143.94 to the weekly support level of 143.19 on Monday and then rallied till the resistance level of 145.95 on Thursday. It was also an up week for the major markets. For the week, the Dow Jones Industrial Average rose 186.74 points, or 1.48%. The Standard Poor's 500 Index gained 17.48 points, or 1.22%, while the Nasdaq Composite gained 36.49 points, or 1.48%. |
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| Oscillators | Trend Analysis | | Symbol | Daily | Weekly | Daily | Weekly | Mtly | Qtly | Yrly | | SPY |  |  |  |  | |  |  | |
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SPY Long-term perspective:
Our long-term perspective has not changed. The SPY monthly uptrend that started on 6/14/2006 has a five waves impulse structure. Fifth wave is in progress and forming the rising wedges pattern. The rising wedge appears in a mature trend characterized by overbought long-term and short-term indicators. This situation usually generates divergence on long-term indicators. Rising wedges usually marks the reversal in an uptrend. Price is near the monthly uptrend resistance line. Weekly William's Percentage Range (W%R) is strongly overbought. Weekly Lane's Stochastic is overbought and has bearish divergence. We keep bearish long-term outlook for SPY. |
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| SPY - Trend |  |
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SPY Short-term perspective:
SPY daily William's Percentage Range is overbought. Price is moving within the short term up channel. The resistance line is near 146.11 and support around 144. We expect SPY to test the uptrend resistance line at the beginning of the week and then for the rest of the week chances for pull back are high. |
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| SPY - Trend |  |
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