Chart Courtesy of StockCharts.com
- $SPY made a new all time high on Friday then closed under Thursday’s high of the day.
- $SPY is currently still triggering all bullish moving average long signals.
- Thursday’s breakout to new highs was on increasing volume while Friday’s reversal at the 70 RSI was on even higher volume.
- $SPY ran into resistance Friday at the 70 RSI to close at 68.27 on the week. The 70 RSI held as previous resistance on August 29th.
- The MACD had a new bullish crossover last week.
- The average true range remains tight at a 1.84 (ATR) so no increase in the trading range.
- $VIX at 11.68 is very low historically. VIX is finding support at 11 and not decreasing beyond that level. $VIX is also under a bearish 10 day ema 30 day ema cross under.
- The $290 price level is the previous resistance which could be the new support.
- New longs at this current price level in $SPY do not present good risk/reward ratios.
- All signals point to bullishness on the $SPY chart so opportunities to buy dips back to key levels of price support or key moving averages will continue to be a high probability set up.