SPY at critical resistance level

As we can see in the chart, SPY – the SPDR S&P 500 ETF – is following a bullish channel between its 10-day exponential moving average and the upper Bollinger Band. The drop in the last three sessions, though, brought price just above its 10-day exponential moving average, which acts as a resistance line.

The price action of the next few days will be crucial, as it will reveal the market participants’ intentions. Will the bulls prove stronger and the price will bounce up to resume its uptrend? Or will the bears manage to push price lower, toward the 20- and the 50-day exponential moving average?

Despite the above, MACD is still in positive territory and above its signal line.