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Chart Courtesy of StockCharts.com
- $SPY has held its all time high break out so this chart remains bullish long term.
- Short term $SPY is due for a pullback, the 10 day EMA is one high probability pullback area.
- $SPY has been in a tight $217.37 resistance and $216 support trading range for seven trading days.
- The MACD bullish cross is still in place.
- Slow Stochastics has gone flat and neutral in this tight range.
- The ATR has dropped dramatically after this rally and the market has begun to go sideways.
- VIX at 12.02 shows the current environment is very low volatility. Markets trend from low volatility to high volatility. This is a time to buy cheap options and buy price dips in price and only short extreme overbought levels near the 70 RSI in indexes for small pullbacks.
- The tech sector has been the strongest area of this market however $XLK with a 68.61 RSI does not give much room for an upside in tech with $FB and $AAPL earnings on tap this week.
- $SPY at a 66.07 RSI gives a little upside left perhaps to $220 next week before the market runs into short term profit taking.
- In a market at all time highs there are not stop losses or trailing stops being hit, profit taking is the only resistance.
