- Bullish gap up on Wednesday help support at the low of they day for the rest of the week.
- $SPY price is above all key moving averages showing an uptrend.
- The MACD almost has a bullish crossover.
- The Slow Stochastics has a bullish cross and is showing momentum.
- The ATR has begun to decline again. This is bullish
- Good volume on up days in past weeks.
- 63.78 RSI gives $SPY price more room to run before it is overbought. It would be better for the market to go up slowly and build a price base.
- The $SPY trend is on track for a 50 day/200 day golden cross in coming weeks.
- We could find key short term support at $207.14, the old resistance level.
- Gap fill danger back to $206.25. Price should find support there if it back fills.
- All time highs are back in play now with this momentum.
- The early plunge and correction in 2016 relieved a lot of selling pressure off the double bottom and the odds are we go higher here.
The market looks bullish here from a historical standpoint. We will see if it follows through and continues this trend.
Full disclosure: I am holding long positions here in $SPY $SPXL and $TNA.