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Chart Courtesy of StockCharts.com
- $SPY did bounce near the 200 day sma and the 30 RSI but failed to rally and begin a new uptrend. ($SPX chart had a near perfect peg of the 200 day sma / 30 RSI and bounce).
- $SPY chart remains under a bearish MACD cross under.
- The ATR has continued to expand back to highs on the year as the daily trading range has become wide in March.
- RSI is at 42.71 showing the loss of momentum and we could easily see a dip back to a 30 RSI. A break back over the 50 day SMA would be a new momentum signal.
- The Facebook data breach has caused the tech sector and stocks of companies associated with user data to enter pullbacks. $AAPL $AMZN $FB $TWTR and $GOOGL to name a few.
- The VIX stayed in a range last week closing near the weekly low at 19.97.
- The initial chart pattern had $SPY gap down and out of a symmetrical triangle. This was a bearish break down of the chart.
- $SPY is currently in another symmetrical triangle with lower highs and higher lows.
- A break above the higher descending trend line would be bullish and a break down below of the lower ascending trend line would be a new bearish signal.
- Currently the market is in a correction and this is the opportunity to buy the stocks you want at rare price levels near the 200 day SMA or 30 RSI.