SPY Market Analysis | 8/19 - 8/23

What a Market!

After breaking the downtrend and retaking the 50SMA last week, markets continued the push up with price breaking resistance (making new highs) at 554.87 on favorable data indicating price will likely form a new flag pattern to the upside very soon.

With the squeeze just now rolling over to positive values I'd expect at least another day or so of up before we see a move back down.  It will be critical for the market to hold up the next couple of weeks to continue this momentum back up we will want to see the squeeze values remain positive and a new wave of bullish momentum form that overcomes the recent bearish momentum because MACD values still remain below 0 and that could definitely cause significant volatility from here.

If it is unable to do that, we will likely see another wave down in the very near future, but I suspect due to the recent move back up we'd need to form new bearish patterns back below the 100 around 531 to do that.

Levels to Watch:

50SMA, 100SMA - Trend Support/Resistance

554.87 - Daily Resistance

565.16 - Upside Resistance