10/29/20 – Back on the Island

The SPY weekly chart has a green horizontal line highlighting the activity around the important 320 level. This marked the low of the September decline suggesting support, and an area of resistance for the spring rally. SPY currently sits at a slightly less significant support/resistance level. It seems inevitable that there will be a test of the 320 level at some point soon which is also close to the level of the 52 week SMA.

The impending three down weeks in a row is unusual following the four down weeks in September. No reason to panic, but not exactly a stress free time for longs.

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