10 Fast $SPY Chart Signals: 11/5/17
Chart Courtesy of StockCharts.com
  1. The bullish signal of new all time highs continue.
  2. Price is bullishly over all moving averages.
  3. The 10 day EMA has been a key short term support level.
  4. The RSI at 70.66 shows the momentum to trend through overbought price levels. The RSI over 70 has been a momentum signal since November of 2016 in one of the most overbought markets in history.
  5. $VIX is near an all time historical low in volatility at 9.14. Creating very cheap put options on $SPY as fear is very low at these price levels.
  6. The ATR continues to increase giving traders more of an intra-day trading range.
  7. The MACD is under a bearish cross showing signs of a market losing momentum.
  8. Volume trended lower last week as prices pulled back and then went higher. Volume remains healthy.
  9. $XLK Tech sector has been the leader for $SPY going to higher prices with $FB $AMZN $GOOGL, and $AAPL leading the market higher.
  10. The winning strategies in this market have not changed, buy the quick dips or buy and hold long and follow the trend.

I remain long $QLD and $UWM here.

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.