Click here to get a PDF of this post

Chart Courtesy of StockCharts.com
Chart Courtesy of StockCharts.com
  1. $SPY failed to break out of all time highs last week.
  2. $SPY has gone no where for a year back to the same price levels of early 2015.
  3. $SPY is still holding over the long term the 50 day and the 200 day moving averages.
  4. RSI is near neutral at 50.32.
  5. $SPY had a reversal candle Friday near the $204 short term support.
  6. $SPY went down on Thursday and Friday on increasing volume.
  7. $SPY lost the 10 day EMA last week.
  8. MACD has a bearish cross.
  9. Slow Stochastic is under a bearish cross.
  10. Average true range is beginning to increase signaling that the trading range could expand.

There is a high probability next week of range bound price action and expanding volatility before we break out to new all time highs.