All about this chart

We are basing at the very important 135 $SPY area while trending higher on the 20ema on the 60 min chart.  However note that we have tested it three times already in three days — the more we test it the weaker it becomes.   If we revisit again any time soon good chance it will crack.

Sticky Level

The bulls couldn’t ask for better price-action thus far as the market is refusing to pull-back and instead is constantly digesting thru time and then making a leg higher.    We are at a sticky level– one we posted last week — the $SPY 134.8-135

Extended into a major resistance area but handling it well so far– the more we base near 135 the better the potential break-out will look.   We’ve mentioned for a while that our favorite sector right now is the $XLE — good bases in this sector and not extended (compared to market).     That’s the place we have been and will be focusing for near future.