SPY Chart 2015 6/7/15

 

 

 

 

 

 

 

 

 

 

 

  1.  $SPY is currently range-bound between $208 and all-time highs.
  2. The RSI is showing short term distribution at 44.61.
  3. The MACD is still indicating distribution after the bearish crossover and downward trend.
  4. The high probability buy point is at the alignment of the  $208 price/ 100 day SMA/ 30ish RSI, if we get there next week. I would be a buyer at those levels.
  5. $IWM is the strongest index ETF, and I would sell it short near the 70 RSI.
  6. $DIA bounced off the 100 day SMA Friday. I would be a buyer if it falls to the 30 RSI next week.
  7. $XLU and $XLP are both oversold and due for a bounce next week. I am holding $XLU weekly call options.
  8. 2015 is a different environment than 2012-2014, as deep dip buying opportunities are more rare due to quick rallies. Buying momentum is usually a losing trade, as it generally returns inside the trading range.
  9. 2015 has rewarded quickly buying weakness, and even more for quickly selling strength.
  10. 2015 is not a trending market. It is tightly range-bound and is being actively traded, not accumulated.