Finally the decisive break we’ve been waiting for.
This week we saw the SPY finally break out of its symmetrical triangle and hit the the downside target we had laid out over the past couple of weeks.
Note how the 50 period weekly SMA had previously held two excursions to the area however remember the rule of 3’s – the 3rd time’s the charm.
This week’s selling was also accompanied with heavy volume so the intermediate bias is now to the downside with numerous potential downside targets –
- Gap fill @ 196.16
- Fib target @ 192.02
- Gap fill @ 190.30
- Gap fill @ 186.27
- Fib target @ 178.53
- Gap fill @ 177.48
- Gap fill @ 173.22
Here’s an update on our sector rotation watch.
- All sectors closed down for the week
- Major technical damage was done to many of the formerly bullish charts and will require time to fix some of those broken charts
The major sectors are posted here on Finviz for your viewing pleasure –