10 Fast Facts: $SPY Chart 4/26/15

  1.  $SPY broke out of the adjusted for dividends chart on Friday and very close to unadjusted  all time highs.
  2. The MACD is bullish.
  3. $SPY held the 50 day line all week.
  4. $SPY has begun to show momentum by closing above the 5 day ema for five straight days.
  5. A 60 RSI has $SPY on the bullish side of the RSI and with some room to run higher.
  6. For five straight days $SPY has closed above the previous days low, this shows accumulation and is bullish.
  7. $SPY dips are being bought.
  8. All major indexes are within striking distance of all time highs.
  9. Many leading stocks are breaking out of bullish chart patterns. $AMZN $GOOGL $AAPL
  10. I am bullish here with the 68/70 RSI as my target and a close under the previous days low as my trailing stop.

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The $SPY Chart Meat Grinder

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  1. Currently the $211 price level has held as the $SPY resistance on the daily chart.
  2. Friday’s resistance was the 5 day ema.
  3. On Friday the 50 day sma almost held as end of day support.
  4. For nine days $SPY has traded in a $207 support/ $211 resistance price range.
  5. With $SPY up only 1.17% for the year big cap U.S. stocks are not under accumulation in 2015.
  6. The stocks in this index are not being distributed, they are being held and swing and day traded.
  7. Both the RSI and MACD are very near neutral giving no momentum signals for a trend either way.
  8. Friday’s down move had twice the normal recent daily volume.
  9. Greece’s debt default and China’s slowing growth are concerning macro traders leading to some risk off moves.
  10. With this tight trading range the market currently favors: selling into strength, buying deep dips, and taking profits while they are there.

$DIA: My Favorite Equity Index To Own Today

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I bought $UDOW at $141.92 on April 7th, as $DIA pulled back to the 50 day line and stayed above it. When trading leveraged ETFs, it’s crucial to trade them using the regular ETF, as compounding daily losses and gains distorts the leveraged chart that is a derivative of the standard ETF.

$DIA has had more stable price action than $QQQ or $IWM this week, holding the 50 day line and breaking out of a 9 day trading range, with all-time highs knocking on the door.

With a bullish MACD crossover, a 56 RSI, and the 5 day EMA as short term support, it has the potential of overtaking all-time highs in the coming weeks. It will have a leg up in the stock market, with less volatility than small caps or tech stocks, thanks to it’s 30 stable, big cap company stocks.

My stop is a close under the 5 day EMA, and my target is the 67-70 RSI level on the daily chart.

$AAPL Surfing the 50 Day

AAPL Surfing the 50 day up

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AAPL Pennant

 

The interesting thing about the current $AAPL chart, is that it is a neutral pennant pattern with  the 50 day SMA line creating a rising support, and the upper resistance trend line declining. A close above the upper trend line, or a close below the 50 day SMA, will create either a bullish buy signal or a bearish sell signal.

The $AAPL chart appears to be positioned for a breakout next week.

The 50 day line is a bullish buying opportunity for monster stocks. $AAPL is a growing and cash flowing behemoth.

With the current $AAPL chart pattern and the overall market’s recent bullish behavior,  there is a high probability of a breakout, and trend back to all time highs.

The 50 day line is the dip buying opportunity, and a break above the trend line is a momentum buy signal. A close under the 50 day negates the bullish bias of this chart.

$SPY: Whipsaws, Chop, & Resistance 4/12/15

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  1. Last week the chop continued as all the bearish signals of another down leg had no follow through, and the market rallied slowly and steadily to trigger bullish signals.
  2. On Monday $SPY broke out over the 50 day, 5 day EMA and short term resistance to signal a buy.
  3. Intra-day noise last week was choppy and confusing for most traders. I took a long entry on $SPY $SPXL & $UDOW after the breakout over the 50 day. I used a close below the 50 day as my end of day stop to sidestep the intra-day noise. The right position size is a must with this strategy.
  4. Tuesday and Wednesday were met with selling into strength, and the chart resistance level held.
  5. Breaking over and closing above the 50 day SMA put us back on the bullish side of the chart.
  6. The deeper dip that I was waiting for never came, and momentum signals to buy strength had to be followed to avoid missing this upward move.
  7. Last week the MACD had a bullish crossover that held.
  8. Last week the 50 RSI was broken for a bullish signal.
  9. The last resistance level at $212.97 is within striking distance in the coming weeks.
  10. A loss of the 5 day EMA and 50 day SMA will be a signal that the uptrend is back under pressure. Until then, bulls are back in control and my bets are on them.