- MACD Bullish
- Slow Stochastics Bullish
- Declining ATR Bullish
- Price over the 200 day SMA is Bullish for the long term trend.
- Price over the 10 day EMA is Bullish on the short term chart. However price is extended over 1 ATR above the 10 day. We could see a pullback to the 10 day EMA this week before we go higher. I will be buying that dip if it happens.
- It will be difficult for price to go immediately higher with the RSI at 69.47. The odds favor some more consolidation at the $204/$202 price range this week before we go higher.
- This strong rally off the double bottom and over the 200 day puts the possibility of returning to all time highs back on the table this year at $SPY $213.78.
- Most SPYder sector ETFs are pushing their 70 RSI so the odds are on consolidation next week or a small pullback before higher.
- The bulls are back in control of this market after the correction. I will look to buy pullbacks as long as the 200 day holds.
- The strongest index ETFs are the big caps $DIA & $SPY benefiting from the oil bounce back. $QQQ is struggling at the 200 day and much weaker than the broader $XLK. $IWM was the weakest index ETF the past two weeks but still has the 200 day within striking distance.
Full Disclosure: I exited my large $SPY trade Friday for a nice profit in dollar terms. I will look to buy back with a $SPY pullback near the 10 day EMA. I am currently long $TQQQ with a stop on a close below the 200 day SMA.