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With all the perma bull fan fair we are sitting on a 4.33% return in 2014 for $SPY and it has been a choppy ride up with plenty of whip saws. I know many swing traders and day traders that are out performing buy and holders and trend followers.
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The 50 day sma has been the primary support for $SPY since February of 2014 with only three days below it.
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This market is still in a tight range that tends to revert back to the 50 day sma. I am still looking to short into strength and buy into weakness.
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It would be very difficult to make much from a long trade from here being so close to the 70 RSI. For bulls the 70 RSI on the daily chart is a bitch and historically this is where reversals happen or if the 70 RSI is broken a very slow grind up if the trend holds. Risk/reward once again favors the shorts.
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Since mid-April the 50 RSI has acted as support in the $SPY
