Possible Support Could Lead to Market Bounce

Tom Gentile

Posted in Technical Analysis

By: Tom Gentile on January 17th, 2022 • 2 mins read

Look at this chart on the SPDR S&P 500 ETF Trust (SPY):

SPDR SP 500 January 17th 2022

I use the SPY to represent my view on the US equities markets, ( I use TLT for bonds, USO for oil and energy, GLD for Gold, and UUP for US Dollar).

Support and Resistance

The 470-price has been a resistance for SPY since November of last year. It broke out above that and failed to gain momentum and shortly thereafter broke below it and has once again formed a pivot high the combined, 2nd, 3rd, and 4th trade day back.

Prior to that pivot high we had a pivot low form around 460.

 In order to form another pivot low at a similar price to this recent one at 460 we need to see a bullish day on Tuesday when the markets open back up. That would mean a bullish day where the markets close higher than its open and preferably more in to the bearish candle body of Thursday.

If that happened we could be looking at a double bottom support and that could lead to more follow through to the upside.

If it takes out the pivot low it would not surprise me to see it retrace to 455 as a possibly support.

App: Toms Option Tools

Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.

Other times I will have other charts may work to amplify my educational points. 

Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.

Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.