Bears & Bulls Battle at the 200 Day Line

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Bears & Bulls Battle at the 200 Day Line
Chart is Courtesy of StockCharts.com
  1. We are now in a short term range bound market that is inside of a longer term bull market.
  2. Last week down days were on much higher volume than the up days.
  3. For 13 of the last 14 days the 10 day EMA has acted as end of day resistance.
  4. The $SPY average true range is as high as it has been since 2008. The intra-day volatility is creating a very large trading range from a historical perspective.
  5. $VIX has remained steady at 21.49 with fear for a further plunge not being priced in yet with $SPY Put Options.
  6. The MACD remains under a bearish cross under.
  7. The 41.96 RSI shows a loss of momentum. Key short term support should come in on dips back to the 30 RSI.
  8. The 50 day SMA crossing under the 100 day SMA was a long term signal to exit longs with that moving average system. All my short term moving average systems for trend following have been signaling to be in cash during this downtrend.
  9. The more the 200 day SMA is tested the greater the odds that it is broken for a new trend lower.
  10. Under the $SPY 200 day SMA opens up the potential for a long over due market correction.

The strategy that has been working in this market has been to buy the extreme price plunges and sell into the quick rallies.

How my last dip buy worked out:

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