- $SPY is extremely bullish near all time highs.
- New highs were made on increasing volume.
- Price has spent over 40 days closing over the 10 day ema. Very bullish momentum signal
- RSI remains parabolic overbought at 81.21. Since the U.S. election RSI over 70 has been a momentum signal.
- The $SPY chart remains under a bullish MACD crossover after the last one played out for a nice uptrend.
- The average true range spiked up to 1.76 last week with the pending U.S. government shutdown with one of the highest readings since last December.
- $VIX trended up all last week until finally pulling back to 11.27 Friday. This is still a very low volatile market.
- Stocks as an asset class are under accumulation as all SPY sectors are near all time highs except utilities $XLU.
- The winning systems continue to be buy and hold investing and trend following with the markets giving no big pull backs in price for dip buyers.
- Past government shutdowns have lead to a small pullback and then higher prices. Historically government shutdowns have not lead to any downtrends, bear markets, or crashes.
Government shutdowns and behavior by stocks:
H/T Cooper Howard@Bloomberg pic.twitter.com/KkzGsGXQcz— Liz Ann Sonders (@LizAnnSonders) January 19, 2018