$SPY Chart

Chart Courtesy of StockCharts.com

 

  1. 2015 has been the year of tight price consolidation. $SPY is up 3.36% year to date, making it difficult for index traders to trade the tight range. Dips are not deep enough, and momentum signals have not worked as strength has been sold.
  2. $SPY was able to finally clear an old resistance level at $211.35, but ran into resistance at all-time highs.
  3. $SPY had a bullish MACD crossover Thursday, but it happened as a momentum signal near resistance instead of a reversal signal off support levels. This type of momentum signal has not worked this year so far.
  4. With $SPY at a 58.29 RSI and $DIA at a 60.61 RSI, there is not a lot of upside left for big caps. This is generally the overbought levels that big caps have had trouble with all year.
  5. The $SPY bounced off the 50 day SMA on Tuesday, but it needs a deeper dip and price consolidation to give us better odds of a new move higher. The chart structure puts the odds on more consolidation and range trading.
  6. $AAPL, $GOOGL, $FB, $LNKD, $TWTR,  and $PCLN are not performing well. Making all-time highs with very little market breadth is not healthy for a bullish environment.
  7. The leading sector ETFs are currently, $XLP, $XLB, $XLF ,$XLI , and $XLK. The problem is a lack of strong leading stocks.
  8. $GLD and $SLV are showing strength breaking over their 200 day SMAs.
  9. The U.S. Dollar is heading back to it’s 200 day SMA. : $UUP
  10. $USO is consolidating price, and has found support on the 21 day EMA.