SPY’s Spinning Top, DIA Broke Support
PikerTrader | Apr 25, 2013 01:30AM ET
A non-eventful day for the market today. SPY closed flat today after failing to get above its high at 158.30. But the bulls remained above short-term support at 157.54 and above its major support at 156.84. The long tail at today’s candle will need to be broken if the bulls want to clim to the 158.90 level. The recent run-up with the spinning top is a slight warning sign to the bull’s case. A spinning top marks indecision and after a run up is a sign of bearishness.
DIA was the weaker of all the indices. In fact DIA broke below its support level which is bearish and there is little support for DIA below this level till 145.60. Watch to see if the weakness continues.
The Piker Indicator is almost flashing overbought and is in the “Yellow” or Slow down with longs level. A move above the yellow dash line is overbought and a move above the redline is the danger zone. Another move like today’s or even more bullish and the market is overbought so be careful.
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