10 $SPY Chart Facts 2/28/16

10 $SPY Chart Facts 2/28/16
10 $SPY Chart Facts 2/28/16
Chart Courtesy of StockCharts.com
  1. It is not bullish for indexes to be negative year to date. Rallying after a plunge is not the same as breaking out of a range.
  2. $SPY gapped up Monday and then closed at $194.78 then bounced around all week only to close on Friday at $195.09. After the Monday gap $SPY was not accumulated or distributed but simply traded back and forth.
  3. This market remains very week and is not really trending as much as it is churning. Most money made on the daily time frame disappears as quick as it comes.
  4. $SPY did break out of the 50 day resistance but failed to follow through and trend above it before an immediate pullback Friday. This market continuously takes one step forward and two steps back. It is better to buy dips and sell rips at this point in the weak up trend.
  5. RSI still has room to expand so prices could still move higher next week. The 65-70 RSI range is where I would look to sell this market short again. Which could converge with the 200 day SMA.
  6. The MACD bullish cross has remained strong.
  7. The Slow Stochastics is starting to show a loss of momentum and could rollover next week which will be a signal for me to look to short.
  8. $SPY has formed a double bottom pattern which should keep the market from revisiting those lows for weeks.
  9. If this market does rally to the 200 day SMA next week it will be overbought short term, it need to form a larger price base before an attempted breakout our of the 200 day SMA.
  10. I am looking for shorting strength and buying weakness next week as this market could become overbought very quickly on the daily timeframe with more of a rally.