Convergence of Resistance and Reversal (SPY)

The dramatic upswing in the S&P 500 chart (represented by the SPY ETF chart above) stalled late this week at a predictable point (white ellipse). Daily price action is represented by green and red candle figures. In the area of 108-110 we see a convergence of the 50 day simple moving average (purple), the 200 day moving average (blue), and the upper trend line connecting peaks in a downward channel since the April highs (white). While the market has been quite unpredictable, until these points of resistance are cleared, the most plausible direction/target seems to be the area of 96-97 (green highlight arrow) which corresponds with a long term support level. To see an enlarged version of the chart left click on it.