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$SPY Chart Signals 1/2/17
Chart courtesy of StockCharts.com
  1. Long term the $SPY chart is still in an uptrend.
  2. $SPY remains within striking distance of all time highs in price. But needs price consolidation and a pullback before it can really go higher.
  3. The odds of success favor buying pullbacks.
  4. In the short term $SPY is on the wrong side of the 10 day EMA showing short term weakness.
  5. Volume expanded during the recent drop from the high price base.
  6. The MACD is under a bearish cross.
  7. The RSI is neutral at 53.63. $SPY is no longer overbought.
  8. The ATR stopped declining last week and has begun to expand volatility to create a more tradable range.
  9. A high probability dip buy would be near the 30 RSI if we get there next week.
  10. A pullback to the $220 price break out are or the 50 day SMA convergence would be another high probability dip buy area.

I am currently short $DIA via $SDOW looking for the DJIA  20,000 to continue to be a sell the news area. I am looking to buy a deep dip in SPY.