G. Allan Collins
I have to make a flight so it’s going to be a quick one tonight.
Today the S&P 500 Tracking ETF SPY was up .22% to close at 455.20 and it looks like SPY is trying to push outside that upper Bollinger band. SPY closed above 453 which in all likelihood means we’re going to 460 and then above 460 we have the previous all-time high. If the big tech companies continue the after-hours sell off after TSLA and NFLX’s earnings reports. SPY could easily start pulling back down towards 450 or the gap at 443 but follow the price action because as long as we put in a higher low above 436, then we’re still in a bull trend. Otherwise, we’re likely going through a deeper correction that could take us to the gap fill at 423.
The QQQ closed down a smidge, last trade was down 0.02% on the day at we are still trying to push up to resistance at 387-393 and then it’s likely we will get that pullback and go down to fill those gaps at 374 and 368.75 and as long as we hold 365 we are still in a bull trend my friend. The Bulls have support at 383.97, 383.30 and 380.29
The Dow Jones was up .32% today and we got the Bull breakout above 346, but keep in mind we are pretty overextended at these levels. The DIA (DOW SPDR ETF) gapped up outside the upper bollinger band this morning leaving a gap below at 350 and we are very close to critical resistance at 350. So while I do think the Dow Jones is going back up to the previous all-time high, don’t be surprised if we get a pullback to retest the breakout before we continue this bull trend. And of course, this pullback could always go deeper to fill the gap around 339. So yes, these are bull trends, but that doesn’t guarantee we won’t see a correction or a pullback. Pay attention critical resistance and the gap fills below and as I always say, let the chart do all of the talking and follow price action and you will be in great shape.
G. Allan Collins