Chart Courtesy of StockCharts.com

  1. $SPY made a new all time high on Friday then closed under Thursday’s high of the day.
  2. $SPY is currently still triggering all bullish moving average long signals.
  3. Thursday’s breakout to new highs was on increasing volume while Friday’s reversal at the 70 RSI was on even higher volume.
  4. $SPY ran into resistance Friday at the 70 RSI to close at 68.27 on the week. The 70 RSI held as previous resistance on August 29th.
  5. The MACD had a new bullish crossover last week.
  6. The average true range remains tight at a 1.84 (ATR) so no increase in the trading range.
  7. $VIX at 11.68 is very low historically. VIX is finding support at 11 and not decreasing beyond that level. $VIX is also under a bearish 10 day ema 30 day ema cross under.
  8. The $290 price level is the previous resistance which could be the new support.
  9. New longs at this current price level in $SPY do not present good risk/reward ratios.
  10. All signals point to bullishness on the $SPY chart so opportunities to buy dips back to key levels of price support or key moving averages will continue to be a high probability set up.