The ETF's that represent the major indices are approaching key resistance
levels. While technicals and fundamentals barely matter anymore, the markets
have come a long way in a short period of time. With momentum waning, resistance
may actually do what it normally does - slow this advance. Now that would
be a novel idea!
Figure 1 is a weekly chart of the S&P Depository Receipts (symbol: SPY).
The red and black dots represent key pivot points; these are areas that represent
the most significant buying (support) and selling (resistance). As you can
see, the SPY is coming into a resistance zone between 130 ~ 132. This resistance
zone is from January, 2008.
Figure 1. SPY/ weekly
Figure 2 is a weekly chart of the PowerShares QQQ Trust Series (symbol: QQQQ).
Price is coming into the next level of resistance at 57.36, which is a key
pivot point going all the way back to January, 2001.
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