SPY technical analysis 21/10/2018

SPY had a pretty whipsaw week. Many directional changes intraday which made trading difficult. Have to remind cautious with day trades, possibly reducing size and increasing distance of stops to account for the increased volatility.

Friday was another inside day with now the most important ranges being 279.3/275.45. Inability to break the lower high of the previous day was a signal that we were going to see continued downside on friday. The weak close increases the possibility of a bear break of the inside bar which will lead to more downside to the recent swing low.  There is still room for the bulls to work with to the swing low and am still looking for the Higher low to form. The HL will be marked by the change in trend on the hrly time frame.

Will have to keep an eye on XLK and XLF as they are a large part of the SPY. If both XLF and XLK are unable to hold their lows, we will most likely see a Lower low on the SPY.