Chart courtesy of StockCharts.com
- Price remains above all moving averages.
- The VIX trended lower last week making lower highs and lower lows each day showing decreased fear and volatility.
- The average true range stays in a tight range with a 1.87 ATR as $SPY continues to trade in a very tight range.
- The MACD remains under a bearish cross under.
- The swing higher last week was on lower volume than the previous swing lower.
- The RSI at 65.74 creates a skewed risk / reward ratio against new long positions here as the market is near being overbought.
- The previous August 29th and July 25th short term tops were marked near the 70 RSI.
- Price could see resistance near the all time high in price.
- The market is in need of a pullback or a longer price base to set up a better set up to trend higher off of to avoid becoming extended.
- This market still favors profitability by buying the dip and letting winning trades win.