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Chart Courtesy of StockCharts.com
- $SPY continues to be in a long term uptrend pressing new all time highs.
- $SPY broke out last week and held the gap higher to create a new trading range.
- Bullish MACD crossover last week.
- RSI stays high at 63.74 pointing to overbought short term and needing consolidation.
- The ATR decreased on the breakout as volatility stays low.
- $VIX Volatility Index – one of the lowest weekly closes in history: 10.58.
- From a technical stand point this market is extended and overbought as it has ever been by most parameters.
- From a fundamental stand point this market is above value as much as 1929 and 2000.
- The risk/reward ratio favors short sellers here short term.
- This market structure favors buying pullbacks and letting winners run if you are already in but entering at these levels is a little late in this trend.