The Week Ahead Key Levels for the SPY

Don't fight the Fed!I was watching last week's action in the SPDR S&P 500 ETF (

) very closely as we had reached a critical resistance level. There were a number of technical indicators that were showing weakness and the idea of shorting the market was looking like the best bet out there. Last week was a prime example of how fundamentals can override technicals. The momentum was looking negative for stocks going into the week started on the 19th of September and the short mindset was gaining conviction. I jokingly mentioned that the markets would tank unless some sort of massive fundamental event occurred which would miraculously send stocks soaring out of their recent range. For the markets, the Federal Reserve's announcement to pump more money into the system seems to have done the trick. Now, this is not an overnight recovery announcement, but the Fed is...

Written by Jordi Perez. Go to www.MarketSpaceTrading.com for the full article, live charts and more newsletter updates.