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Tuesday, September 21, 2010

SPY Rise Strong, Approaching Trendline Resistance

-The speed at which SPY has been rising is incredible. My technical indicators are also slightly misleading due to 0.60 dividend adjustment last Friday, which Reuters does not seem to adjust for. We are, however, approaching the upper trendline resistance area 115.5 to 117.5, and I would expect some form of consolidation over the next week or two.
-I am moving my stops up to 111.9 and 110, but I am expecting SPY to remain in a bullish trend.
-Fair Volatility Estimate is between 18-19, while implied volatility on SPY options is 19.

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