$SPY did bounce near the 200 day sma and the 30 RSI but failed to rally and begin a new uptrend. ($SPX chart had a near perfect peg of the 200 day sma / 30 RSI and bounce).
$SPY chart remains under a bearish MACD cross under.
The ATR has continued to expand back to highs on the year as the daily trading range has become wide in March.
RSI is at 42.71 showing the loss of momentum and we could easily see a dip back to a 30 RSI. A break back over the 50 day SMA would be a new momentum signal.
The Facebook data breach has caused the tech sector and stocks of companies associated with user data to enter pullbacks. $AAPL $AMZN $FB $TWTR and $GOOGL to name a few.
The VIX stayed in a range last week closing near the weekly low at 19.97.
The initial chart pattern had $SPY gap down and out of a symmetrical triangle. This was a bearish break down of the chart.
$SPY is currently in another symmetrical triangle with lower highs and higher lows.
A break above the higher descending trend line would be bullish and a break down below of the lower ascending trend line would be a new bearish signal.
Currently the market is in a correction and this is the opportunity to buy the stocks you want at rare price levels near the 200 day SMA or 30 RSI.
