- We finally see volume coming in on Thursday and Friday as the market moves higher, this is bullish.
- Bullish Slow Stochastics Crossover.
- Bullish to have a declining ATR.
- Bullish MACD.
- Bullish to be over the 10 day EMA, but price needs to consolidate here as price is extended from the 10-day EMA.
- Bullish $SPY breakout over the 200-day SMA. It would be normal to return to the 200-day SMA next week before and if we head higher.
- RSI bullish at 65.76, but we need a trading range over the 200-day SMA to consolidate overbought levels short term.
- Central banks continue to do whatever it takes to keep the bull party going. The ECB rollercoaster ride was won by the bulls.
- Historically buying over the 200-day is a trend following signal that can lead to big wins. A break over the 200-day doesn’t always proceed a new uptrend, but ALL bull markets must first break over the 200-day BEFORE a new uptrend begins. It’s a useful long term trend filter to get you out of bear markets and corrections when it’s lost, and get you in at the start of new uptrend when it’s overtaken.
- If the 200-day is lost, MACD crosses back over bearish, or the Slow Stochastics crosses back over bearish crossover, then the bears have regained control.
Full disclosure: I am currently long $SPY and $SPXL in two of my systems. A close under the 200-day SMA will stop me out of $SPY. If we continue to trade above this key level, I will be holding my long positions with size.