The SPY came down quickly and on volume this morning to the bottom of its recent trend-channel support drawn off of the July lows, where price has found intraday support. Internals are obviously bad, although cumulative tick is only slightly net negative. For now I therefore want to respect potential channel support with light longs going into the afternoon session.
[Add:] On the other hand, if this can’t hold, I should point out the prospective cross back down in the McClellan Oscillator (bottom right on today’s charts). I’d then put next support in the low SPY $110′s.
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