SPY Chart 3/25/18

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SPY Chart 3/25/18
Chart Courtesy of StockCharts.com
  1. Last week the $SPY chart broke out of the symmetrical chart pattern to the downside.
  2. The MACD was under a bearish cross under all of last week.
  3. The ATR expanded to the upside showing the expansion of downside volatility.
  4. Volume expanded by over 50% as prices fell to the downside.
  5. The RSI is entering oversold territory at 30.30.
  6. $VIX is near the March high at 24.87.
  7. Remember that in volatile markets prices can move strongly in both directions at any time, the biggest rallies many times happen even during downtrends.
  8. For swing trading systems the risk/reward gets better as prices enter overbought technical levels near long term support. Dip buys are invalidated if key support levels are not respected by the end of the day.
  9. The $SPY 200 day SMA moving average is my dip buy technical level if the level holds or price is lost below it then rallies and closes back over it.
  10. If the $SPY RSI closes above 30 on Monday this is another level I will be looking to buy.

If prices close below the 200 day SMA and/or the 30 RSI this could be a big signal that the potential of a correction or bear market is on the table. Bulls should step in and defend these levels next week if the market is still under accumulation.

I am currently flat and looking to buy the dip.