The momentum continued on last weeks shortened trading week with higher highs being made and the extension from the short term moving averages holding.
Four out of five days last week the $SPY closed lower than it opened with the gains taking place overnight in the futures market and $SPY finishing below where it opened. The overnight Futures traders continue to push the index higher and equity traders digest the gains during the day.
$SPY added a bullish MACD crossover to all its bullish indicators.
$SPY has made a higher high and a higher low for the past six trading days. This is the definition of an uptrend.
$SPY has closed above the previous days low for seven consecutive days. This is my end of day trailing stop on my current long positions.
We are close to reaching the overbought area based on the RSI and short term moving average extensions so the risk/reward with initiating new longs at these levels is not ideal and buying intra-day pull backs to the 5 day ema will present better odds of success than chasing momentum for short term swing traders.
With the volume being so low on Wednesday and Friday we will have a better understanding
My target for my open long positions is the 70 RSI and $SPY $212 area.
