Bulls Were Stopped At Key Resistance: SPY Chart 2/10/19

Bulls Were Stopped At Key Resistance: SPY Chart 2/10/19

Charts Courtesy of StockCharts.com

  1. Price closed below the $SPY 200 day and 250 day simple moving averages last week failing to break to a new bull market trend to the upside so far. 
  2. $SPY remains above the 10 day, 50 day, 100 day moving averages after the recent up swing from the December 24th lows. 
  3. The $SPX chart (pictured below) found resistance at the 200 day SMA last week. 
  4. $SPY found resistance at the overbought 69+ RSI last week and ended at 61.30 not able to grind higher into overbought conditions. 
  5. The trading range continues to compress to a 3.60 ATR. 
  6. Volatility continues to decline to a $VIX at  15.72 and under the 200 day SMA for the first time since October 5th, 2018.
  7. The search for yield has driven capital into the Real Estate $XLRE and Utilities $XLU sector ETFs as bond prices increase the bond yields decrease. $TLT $HYG $JNK
  8. The strong U.S. dollar up trend $UUP has driven down the value of oil $USO and the energy sector $XLE ETF.
  9. The stock market needs time to work through overbought conditions before the potential of a new uptrend begins
  10. The odds shift here to a sideways rangebound market next week waiting for  the outcomes of the China trade deal and U.S. government shutdown before a new trade becomes established. 

Bulls Were Stopped At Key Resistance: SPY Chart 2/10/19