The S&P 500 (ETF:SPY)
The S&P 500 (analyzed here using the ETF:SPY) has rallied up to test the highs as forecast in last week’s newsletter. As I said last week…
“For the most accurate forecast, I would have to take a pressure reading as the highs are tested in order to determine what the odds are for a double top or breakout to new highs.”
That pressure reading I’m seeing as the market closes out the week suggests that the resistance here at the highs will hold.
I would be taking short exposure in anticipation of a bearish reversal if there had been any candlestick confirmation an the daily chart. But, as you can see from the chart posted here, the Friday candle was a non-committal green bar.
I would expect to see the market tease and dance with the highs, then reverse and head lower before the end of next week.
With the weekly update format I don’t have the agility to call the top with precision so will try to capitalize on this generalized bearish opinion with a relative weakness opportunity in the stock of Coca-Cola (NYSE:KO)