SPY Daily Chart - Overbought Bearish Divergence Short Potential
Updated
As you can see in the chart, SPY has once again run into resistance at the $302 price range. The slow stochastic is overbought & seems to be turning over. There is also a bearish divergence forming between the price & RSI indicator. A 61.8% Fibonacci extension target gives us a price target that is near the current support line. It looks like a good time to take a short position in the SPY (VIX is also down around 14, good time to expect some more volatility).
Trade closed: stop reached
This setup was established as a short position but the market broke out in today's trading. The move would've been to close the short position & either sit back or take the long breakout as a momentum/swing/day trade depending on your style.
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