Keep your eyes on $242.40 support on SPY. The 10 minute chart looks like we’re going back to test this important support level.
The Twiggs Money Flow shows heavy distribution took place today so a sell-off is underway. The question is, how deep will the sell-off be? The 10 minute chart shows support at $242.50 and so that will be the first level to watch.
On the weekly chart, Effective Volume and the Twiggs Money Flow still look bullish. There is a support zone ranging from $239.59 to $242.93. This zone is formed by a combination of multiple trend lines. There is also support at $227.59 from a trend line in the weekly time frame. Finally, there is a a support area at $208.54.
The daily chart of SPY still looks fairly bullish although we have uptrend line support broke today. Again, $242.40 is the support level to watch tomorrow. The Twiggs Money Flow and Effective Volume look bullish in the daily time frame as well.