SPY stalls near January high

After a gap and surge above 114 on Friday, the S&P 500 ETF (SPY) stalled with a small doji on Monday. This is hardly surprising given potential resistance near the January high and short-term overbought conditions. SPY is up over 7% since mid February and up over 3.5% the last nine days. Doji, as we know, signal indecision that can sometimes foreshadow a short-term reversal. "Sometimes" is the key word here. Last week's doji did signal indecision, but a short-term reversal was never confirmed with further weakness. Indecision reflects a standoff between bulls and bears. If the prior move was up, the bulls still have the edge after an indecisive candlestick. A decline below 113 would forge a short-term candlestick reversal similar to an evening star. It has yet to happen so the trend remains up until evidence of a reversal materializes. The blue dotted lines capture the last three swings. The current swing is up as long as support at 111 holds.  Charts of interest are show after the "continued reading" jump.