Shares of the SPDR S&P 500 ETF Trust may be ready to move higher. Shares have broken out of the trading range they have been in over the past week.
If SPY does rally, there is a good chance it runs into resistance around $451. This level was support and sometimes in financial markets, levels that had been support could turn into resistance.
This happens because of buyers’ remorse. Many investors who bought SPY for $451 now regret doing so because the price is lower. A number decide to sell, but they don’t want to take a loss.
As a result, they place their sell orders at their buying price. In this case, it’s $451. If there are enough of these sellers, their sell orders will create resistance.
By Mark Putrino
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