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Chart cortesy of StockCharts.com
- Price remains above all key moving averages and near all time highs. Which is bullish for the trend.
- Price is very extended over the 50 day SMA and 200 day SMA increasing the odds for consolidation before we go much higher from here.
- The 10 day EMA has been price support for $SPY since February 3rd.
- The Wednesday gap up was faded on Thursday back under the low of the day, and Friday the gap low was lost. $SPY stayed in a new higher trading range. This is bullish.
- RSI is overbought at 72.62 which puts the odds on a sideways market for awhile before we go higher.
- The MACD is still under a bullish cross.
- The average true range spiked last week giving $SPY increasing odds of expanding its trading range.
- The gap up Wednesday was on high volume while the down days were on low volume showing accumulation.
- $VIX plunged to 10.96 last week. The current trend remains very low volatility in price action which is not good for long side option traders.
- The market currently favors buy and hold investors, trend followers, and day traders who buy weakness and micro dips in price.