1. On Monday the $SPY uptrend was finally broken and the 5 day ema was lost. I was stopped out of my longs.

  2. We had a five day down trend that took us back to the 21 day ema by Thursday.

  3. On Thursday the 21 day ema was held as support and the line in the sand by the “Buy the dip traders”

  4. On Friday we had a gap up over the 10 day sma that retraced to the 5 day ema but closed over it with momentum.

  5. This triggered me to re-enter longs with the Friday low of day as my stop at the end of day.

  6. We now have a high probability set up that could lead to a run to $185.

  7. The RSI at 62 gives us some room to move to the upside.

  8. Seasonally equity markets tend to have “Santa Claus Rallies” at this time of year. 

  9. Many money managers are desperately seeking Alpha after likely not beating their benchmarks this year that may lead to some playing catch up by chasing this uptrend.

  10. This looks more like the beginning of a secular bull market than the end of a cyclical bull market if you look at the long term chart.

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