First Major Retrace Since SPY Breakout

A bull market of a life time was reconfirmed in July. After more than a year and a half in a consolidation pattern the SPY broke out to a new all time high. The new range breakout held many retests of the new support through September and even pretty much through October, but that support broke down November 1st.

Below, see the zoomed in chart of the range breakout and subsequent puke back below the 213 area. There is a confluence of support from 2 lines drawn near the current price as well as the 200 day MA (not shown here). In my opinion this is a high probability support area for the near term and then the 204 and 200 area will likely bring in more buyers as well. The election week could be volatile, but so could any other week of the year. The charts are saying that the bull market is alive and well and until the charts say something different I have to assume the short sellers will continue to drive this market higher.

For last SPY post see here.